Using overlay charts in TradingView for comparative analysis – the must-have guide!

When you trade with Eightcap, you’ve got the added benefit of our seamless support of TradingView! It means you can conduct technical analysis your way, by customising your charts, applying multiple indicators, and spotting potential trading opportunities.

One of the best features is the ability to overlay charts in TradingView, which lets you dive deep into comparative analysis and fine-tune your trading strategies.

We’re often asked questions like ‘Can I overlay charts in TradingView?’ and ‘How do I add a comparison chart in TradingView?’ Let’s delve into this using TradingView overlay charts in more detail and provide the answers you need!

What can you do with overlay charts in TradingView?

The overlay charts feature in TradingView is a great tool for traders! It lets you compare multiple assets on the same chart, and helps you spot correlations between different markets and identify divergences. You can then use those insights to fine-tune your trading strategies!

Here’s what you can do with TradingView overlay charts:

• Compare price movements: Easily track related assets, whether it’s stocks, commodities, or different currency pairs. 
• Spot trends: Get a clear view of leading and lagging market trends to help guide your decisions.
• Identify divergences: Spot potential trading opportunities, only visible through this comparison. 
• Assess macroeconomic impacts: See how one asset class holds up against others and adjust accordingly, especially during market downturns.
• Identify correlations: Easily review how different assets move in relation to each other, which can give you valuable insights. 
• Enhanced market analysis: Gain a broader and deeper understanding of market trends using comparative analysis
• Improve trading decisions: Spot divergences and correlations between assets to highlight potential trade setups that might be really profitable. 
• Reduce screen clutter and confusion: Quickly analyse everything in one view instead of flipping between charts, keeping things neat and manageable.

Traders who are looking to diversify and juggle multiple assets at once will therefore find themselves using TradingView overlay charts daily. These charts streamline your analysis and allow you to make savvy decisions without the hassle of constantly switching between different charts.

How to overlay charts in TradingView

Overlaying charts in TradingView is simple — here’s how you can do it in just a few steps:

1. Open a chart in TradingView: Start by heading over to TradingView and opening up the chart for the main asset you want to analyse. 
2. Add a comparison chart: To compare another asset, just click on the ‘Compare’ button at the top of your chart. From there, you can search for the asset you want to compare. Select it, and in the blink of an eye, it will be added as an overlay on your chart. 
3. Adjust the display settings: For better visibility, you can change the colour and line style of the TradingView overlay chart to suit your preferences. If the assets have different price ranges, don’t worry! You can adjust the scaling by selecting ‘New Price Scale.’ 
4. Add indicators to the overlay: Click on ‘Indicators’ and apply any indicators you like to your overlaid chart. Tools such as Moving Averages or Relative Strength Index (RSI) can help you analyse those correlations. 
5. Save your setup as a template: If you want to save your overlay setup for later, just click on the ‘Templates’ menu and select ‘Save Indicator Template.’

If you ever want to remove an overlay, it’s simple — just hover over the overlaid asset in the legend and hit ‘Remove’ to take it off the chart.

That’s it! With these few steps, you can easily enhance your trading analysis and get to grips with how to overlay indicators in TradingView!

How are traders using TradingView overlay charts?

Traders using overlay charts in TradingView typically find a bunch of practical ways to make the most of this feature. Here are some examples of how different traders use overlay charts:

• Forex traders: They often compare currency pairs to spot strong and weak currencies, helping them make more informed decisions. 
• Stock traders: These traders analyse sector correlations or compare individual stocks to indices to see how they stack up against the broader market. 
• Commodity traders: These guys keep an eye on how key commodities like oil and gold interact with market trends and macroeconomic news, helping them understand the bigger picture.

That’s not all! TradingView overlay charts also let traders compare different economic indicators, like stock indices versus bond yields or the price of gold, to assess trends and overall risk sentiment.

By using chart overlays in various trading scenarios, traders can dive even deeper into market dynamics. This gives them the high-level insights that are useful to consider when making trading decisions.

Boost your trading strategy with chart overlays in TradingView

In short, there are top three benefits that Eightcap traders experience when using TradingView’s overlay chart:   

• Identifying market trends more effectively: With overlay charts, they can see how different assets move in relation to one another, which helps in spotting those important trends. 
• Improving decision-making: Traders can easily spot divergences that could indicate potential trade opportunities, allowing them to consider additional important factors when making trading choices.
• Saving time with multi-asset analysis: By analysing multiple assets all at once, traders can work more efficiently and get more done in less time.

When you combine TradingView’s advanced charting tools with Eightcap’s fast and high-performance trading environment, you’re set up to trade directly from your TradingView overlay charts, allowing for super speedy execution.