 some of the most basic tools but also the most helpful tools in trading views so may have seen some of these may have not and I'm here to help you out with the ones that I use the most of course so you have the toolbar over here on the left right have all these different subfolders or submenus of tools that you can use and this first one has the line you can favorite them by the way if you click on this star so it has the horizontal line the horizontal ray which I use actually I don't use the horizontal line so much so the parallel channel definitely use it I'm starting to look into regression channel so I'll go ahead and favorite that maybe for later and the ray I actually wanted to talk about the ray because let me see there's any other ones no not so many yeah so I wanted to talk about the ray as opposed to the trend line which is obviously very common so should be favorited so we will actually compare those two and in here we have the Fibonacci the retracement and the extensions which are different and the pitchfork so we'll probably look at these three retracement and the extensions and the pitchfork and no I don't really use any of these so no we'll focus on these first the first ones in here sometimes the path but the rectangle sometimes I'll use a rectangle to denote a zone a price a price zone instead of a single static price level I'll use a zone such as a supplier demand zone or a trading zone the circle you know what I actually do use the circle not as much as the path but I do use the circle sometimes the path maybe to say something like you know what here's what I don't like about the path I saw I'll start drawing things like okay so it'll go up and go down you know and I'll try to use like the support and resistance levels where I think it might bounce off of and and maybe it'll come and do this but you know what then in the end it's I mean sometimes they do play out but sometimes they don't not at all so it's just kind of like guessing or too much guessing if you will arrow markers yes I do use the error this is probably the one that I use the most out of this submenu not so much price nodes or comments callouts now arrow marker and the circle I will use these but mostly to mark something and show or share to somebody else I'll use a circle till I say okay me oh maybe it will bounce off at this level I'm expecting it to reach you know this bottom here or I'll use the arrow marker to say I'll probably reach the support or resistance at some point you know and then I'll go ahead and mark it and send it off to somebody else you know or share it like on the discord or something like that but that's really the only reason that I use let's say these these tools the marker the arrow marker and the circle I don't really use much of anything else in here to be honest nope so these are the submenus I use the least and then here we have the head and shoulders of course very good price pattern very common price pattern I use it it's one of the price patterns for the highest degree of probability of of happening triangle patterns yeah and then sometimes maybe the three drivers three drives pattern but head and shoulders I definitely use it's not favorited but I do use it a lot probably too much to be honest but it has like I said it has a highest degree of probability of playing out more so than the double bottom triple bottom flags pennants you know whatever triangles so for that reason it's one of my favorites there's like some statistic charts going around the internet I'll probably post some sometime later which tell you the percent probability of these different price patterns playing out I haven't ever really tested myself so I'm guessing I'm just gonna go on and and believe what other people might have actually tested triangle pattern like I said it's very common so yeah sometimes I'll throw it on there but not much else there and then here yes definitely the long and the short position these I use all the time now of course these are at the end you know whether it's a long or short trade that you're gonna put on after I've used my trend lines my rays my pitchforks my price patterns ten shoulders whatever I'll come down here and I will say okay so I'm gonna go ahead and you know go long on this or short on that and I'll go ahead and throw this tool on so we'll definitely cover that one and never really use this at all it's got a Linux penguin in there cool okay um and then the measure tool yes I do use this one basically to measure so let me give you an example what kinds of things I measure flags and cup and handles let me see this doesn't look like a very good cup and definitely not a good handle so I'll just go ahead and draw this flag here let's say this thing let's say that this thing is flagging right so this is the flag pole I'm gonna head and then take it up here and let's say that I'm gonna go ahead and try to draw a flag which I'm surprised is not a tool on trading view seeing as how a lot of people like it I'll go ahead and clone this right so I'm gonna clone the flag pole and this gives me the height of the next flag pole or basically my price target if you will so I would place this on top of here but of course you don't want to place it really from the top of the flag more conservatively place it at the bottom or the middle I'll use the bottom we're gonna go ahead and clone this one as well so to actually properly draw the flag kind of like so and I'll go ahead and drag this down here there we go so there I have a price target right perfect now in this case because I cloned it then it's very easy you're very simple to you know I don't really have to measure you know that's simply my price target so you know it doesn't I'll go ahead and I'll you know I'll set whenever I want to get into the trade and then once I set it let's say that I'm gonna go ahead and use one of these volume profile levels I like that a lot I like that volume profile indicator so I'll go ahead and click on there I'll immediately extend this to my price target and I'll again try to use that volume profile right about there yep for my stop-loss there we go I'm actually gonna see if this if there's another level earlier so let me there's one could use that although it might be above I'm not sure let me go ahead and get my horizontal right here actually I like this level better it's got resistance support support some resistance and resistance right there yeah I'm liking that level so that's gonna be my stop wash right there yeah there we go okay so back to my measuring tool you could use it to measure something like the flat the height of the flagpole right in this case 563 $5.63 cents if you wanted to draw let's say a new one but like I like I showed you guys basically what I do is I'll just go ahead and clone it and that's a lot more accurate and I'll get the 563 exactly instead of measuring and then having to draw a new trend line to you know to stand in for the flagpole it's just a lot easier but then there are other situations where you don't get to clone like that so let me give you an example let me look for that pattern I was telling you guys about a cup and handle not very good maybe well that could be one it's really sloppy but it might work I mean it's just for illustrative purposes right so I'll go ahead and use the highlighter this is sometimes I use this tool but let's say that's the cup and that would be the handle but that doesn't really work at all because as you can clearly see the beginning of the cup is way higher you know what yeah I could okay let's just say that this is the bottom of the cup right so this is where you would use the measuring tool but I don't like this after hours so I'm gonna erase that and try to shrink okay I remember this is why I don't like the highlighter tool you can't shrink it so I have to redraw it so I'm just gonna redraw it without taking into account extended hours trading so that would be my cup and there's the top of the wick so that kind of works better and there's the handle now that one didn't play out but whatever here's the measuring tool you'd measure from the bottom of your cup right let's say from here and from the bottom of the cup you'd measure up to the top of the cup which would be right there that's two dollars eleven cents so that would be your target price from the handle now you could draw a trend line but then you'd have to know you know you could draw it and then just copy it over or whatever or move it over so let's say that you would have drawn this and you'd have to measure like how high that you know trend line is make sure that it's 211 so that would be 212 11 there we go so be like that so then you can shrink the you know the trend line or you could just mark it like this and shrink it right but that's obviously a lot more work so I don't really draw the trend line here I could just I could just use the measuring tool and then with the measuring tool mark my price target like I did with the ray so that's what I would use the measuring tool you measure the distance you want which is 211 right here and then just go ahead and measure it from the top of the from bottom of the handle all the way to the top and then draw your price target you know with a ray or a line or whatever and then you could go ahead and draw your long position tool where you wanted to so that's what I would use that measuring tool for I do use that every now and then let me get rid of these ads and the zoom tool yeah I sometimes I'll use this I'll see if I can find an example for it but the magnet and the drawing the draw what's it called the lock drawing mode or whatever and the magnet tool are very handy okay this will lock in whatever drawing mode you're in so like if you have a tool selected let me give you an example if I select the ray right here right here's my horizontal ray and let's say that I want to draw a lot of rays so I draw one here I got to go back because it switched me back to the crosshairs right so if I lock the drawing mode okay so if I click on this and then I'll go click my tool I can click that use that ray and then I can keep clicking and it's still in ray mode right so I can keep you know clicking and clicking and click I can draw ray after ray after ray if I use that tool locking mode feature so that's very handy the this one I don't really use it but the magnet tool yeah the magnet tool is the other one so let me give you an example and we'll actually use it later on with the pitchfork sorry but the pitchfork so let me give you an example if you take let's say line no you know it yeah so if you try to hover over you see that it snaps to the candles and the wicks right it'll it'll snap to either the open the high the low or the close of whatever candle you're looking at depending on you know how close how close to it you are but it'll definitely select whatever candle you are on and it'll snap to to that part of the candle right so like right here let me see and click oh wait a minute this is the wrong tool sorry it's not what I wanted yeah I use the trendline tool let me go ahead and get rid of that I want is the okay yeah that's why I didn't want to use the trendline because it's not necessarily straight but let me use the here we go the ray that's better okay so I'm gonna pick this here it's the bottom of the candle body here's the top of the candle body here's the top of the wick so the high of the day so that got snapped right to the top of the day right that's on the 30 minute okay so here we are let me go ahead and pick one we go out to the daily okay so let me switch over to the ray take the magnet off I'm gonna let's say that I'm gonna try to set the ray at the top of this candle right at the wick all right so there it is it kind of looks like it's at the top of the wick but the problem is that when you zoom in then you realize that it's not right it's not at the top of the wick and that can cause issues if you're trying to draw targets and you're trying to set your long and short positioning tools so this is something that I need to learn how to use properly whenever I zoom out there we go okay zooming out and zooming back in me use the zoom tool here actually there all right so you can see that it's not really on the top of that wick right it's close but it's not quite there so let me go ahead and show you now with the magnet okay and then we'll be able to compare both of those let me go back to the time frame where I was on okay okay that's the line right there at 2526 so I can find this and just shrink this here and I thought that was it there we go okay so that's the one now I'm gonna do now is I'm gonna zoom in here and you don't even have to zoom in all the way I'm gonna turn on my magnet tool this time I click on the ray and now I'm gonna hover over it and it's gonna pick there that's candle that I want I'm gonna click on that and that sets the ray okay and that's gonna snap to either the high or the top of the cam of the body or if I was on the bottom of the candle it would snap to the bottom of the body or to the wick right the bottom part of the wick so depending on where around the candle you are if you're at the top it'll either pick the top of the wick or the top of the body if you're below the candle it'll pick the bottom of the wick or the bottom of the body okay but it'll snap exactly to that price level so let me show you now if I zoom in right and I zoom in quite a bit here so we can see the difference and you can see that they're they're not exactly aligned the first one that I put on is this one right it's way above the top of the wick the second one is down here is perfectly on the wick it's exactly 2458 which you can match it up with the high of the day which is 2458 up on the top left there okay so that is a very useful feature we're gonna use it a lot with the pitch for which I'm gonna use in a bit but you can use it with others okay so the locking tool and the magnet tool all right so let's actually go ahead and let me remove some of these and let's actually go ahead and look at some of the above tools that I mentioned like the pitch work and the fibs let me shrink this down and let me find a good place to use this at so maybe not so much up here let me see if I can get a better place to use I don't want to use it here I'm gonna use it right here as you can see I'm gonna I already have this drawn in but I'm gonna go ahead and pretend like I'm doing this again because what I want is to actually use the difference between the trend line and the ray right so the here what we want is let me give an example because that's what I would use a trend line for for drawing something like a flag or some sort of a shape that isn't in trading view but not so much for trend lines actually and here's the reason why let me go ahead and show you what happens when I pick a point like this right so this is a very common thing to do you'll pick a point you'll say okay I want to draw trend a downtrend line from here now try to catch this other you know touch right there and three touches right there right let me switch this to one so it'll be like okay so I'm catching three touches one two three perfect this is a great trend line I like it all right now eventually price moves away from the trend line and your mind wants to force the trend line to move in order to catch a different touch such as that wick right because now it's touching that body and that wick but it's missing this one and that one so and then when it moves even further now you're missing everything right so when you are able to move the trend line or the line in any which direction you want it's it's kind of like a fake you know you're it's like you're tricking yourself into moving the trend line in a way that is not you know kosher or not proper right because here you were touching three but now you're only touching two so that's what I don't like about the trend line because you can you know your brain makes you force touches which are not as strong you could even do something like this and you're touching one two three right two three and then you would just say okay well this is just like a big breakout you know right here it just went up above that and although sometimes it might work sometimes it doesn't you know so I that's why I don't like using the trend line for using for drawing those kinds of support and resistance levels dynamic support and resistance I like using this ray and I saw a JTW do this on the podcast which are highly recommended by the way they're on the discord server and they're now live and streamed so you have video and audio and everything okay so with the with the ray you touch that first point and you touch a second point and it forces the line in that direction at that angle right so whenever something goes above it then you know that it's a breakout right and you're not going to try to fiddle with the line because you won't be able to right because you need to it basically anchors two points your first and your last point right and so now then something like this would be more like a sideways channel which is another tool that we're going to look at which is the parallel channel so you went in a downtrend and you switched over to a sideways trending channel or a horizontal channel right and then you started another downtrend right and and it's all because the ray forces you to look at the actual trend between two points and not you know let your imagination run free as to where it could touch and which ones count as touches etc etc so I really like the ray I highly recommend you guys using it especially when drawing some sort of a uptrend or downtrend line like a dynamic support or resistance such as this one it will force you to look at trend and it'll shrink it inside it'll tell you this was an actually very short downtrend and then now here's that sideways channel and so on and so forth so the trend and the channel sorry the ray and the channel are very useful tools and I definitely separate the use of the ray from the use of the trend line they have their nuance uses and I'm actually quite happy using the ray now more so than the trend line okay so we saw the ray and the parallel channel now let me go back to this area here let me see because we're going to we need to cover other ones and then actually the parallel channel as you'll see here we can actually draw it this way as well it doesn't just have to be horizontal it can be diagonal like this right and sometimes you'll see that that also works it it also looks very similar to like Bollinger bands or VWAP or KY lines or KB lines I don't know what the other indicators there's a whole bunch of indicators like one or two standard deviations from mean or whatever and it's basically just giving you you know the mean line the median line and then the two extremes within where you want to bounce now what I like about this is very visual if you think about it you've always you know you'll hear it and you read it everywhere you want to be into a trade at the bottom not at the middle you don't want to fiddle in the middle okay you want to go long on the bottom or short at the top those are the two places you want to get into trades you don't want to be taking trades in the middle if it reaches the top you take a short right and if you take a short if it goes back to the middle line then you offload one out of two or one out of three or one quarter whatever however many contracts you want right if you take it in them you don't take it in the middle you take profits in the middle okay when it reaches the top again then you'll go you'll be able to take a new short but if it's the middle the only thing you should be doing is taking profits okay at the top you take a short you can enter a new trade in the middle you don't want to enter a new trade you just want to exit the trade all right so remember that don't fiddle in the middle you can take longs at the bottom shorts at the top and that's it the only thing you do in the middle is take profits all right and you can leave runners if you want and that's fine you know if it bounces off the middle then you can go ahead and leave runners so you can see how it you know bounced off of it and then it bounced off the top you can take another short and it goes down when it reaches the middle you can take some profit wait for it to run all the way to the bottom and then you can enter you can close out the old position and enter a new one right because it's at the bottom the the probability of it bouncing back towards the middle or towards the top is a lot bigger than when you're in the middle okay so that is one of the very one of the things that I like most about channels is it's a very visual way to tell me you know this is when you should be entering or exiting or more importantly not not doing anything right in a trade okay so we looked at trend lines raise or zone raise oh yeah okay so fibs there's retracement and extensions and pitch works those are the ones we're going to look at today so like I said let me go ahead and see if I can find a better spot and clear some of these out okay we use that for retracement okay so the retracement as the name implies you're trying to find where something that already extended is going to retrace to so for example from this bottom the trend was up this is actually when it started back in 2020 I believe AI this company so it started trading and it went all the way up but nothing goes straight up it always retraces so it reaches a level and then it retraces it comes back down so let me extend it doesn't matter if you extend this horizontally as long as the levels match the bodies or the wicks whichever you're going to use this goes up it's going to retrace everything always retraces don't forget that so this retracement tool is basically going to tell us what are the Fibonacci levels to which retracement are likely to happen all right because they're these are just patterns that repeat right and nature and and and everything they repeat they can go down to 50 or 61 8 or 78 6 all right you those are the numbers that are on the right side that is the percentage to which it has a trace if it goes all the way to the bottom it basically retrace 100% right at the first level it retraces retraces to is 23.6% which is 157.46 all right it could also retrace to 38.2% all right now the next level is 50% and the 50% level is one of the more well-known or used levels the 50% retracement and the 61 8 78 6 those are the ones that that are the most common and those can help you draw support and resistance levels okay that's the whole point of this now you can also go top to bottom and sometimes I see people you know get confused they're doing something like this top to bottom they're like oh should I have done it like that well then it doesn't make sense because you know if this went up to 100% which is 178.63 a retracement of 78.6 doesn't make sense right let me let me let me show it let me let me give you a clear example this is going up from top from bottom to top it retraces 23.6% right so 158.07 is 23.6 less than 178.13 that is a 23.6% retracement it went up and it retraced backwards so you draw it from the top to the bottom and you expect it to retrace top to bottom right like a drawing a letter a it goes up and then it comes down it retraces down to 23.6 okay do not get confused drawing these things top to bottom you draw them bottom to top when the trend is up and you want to see how much it retraced down you draw it top to bottom when you're going for a trend down so this is the wrong way to draw this because it went from 192 all the way sorry it's from 92 all the way to 177 and then back 78% that doesn't make sense that's not a 78.6% retracement off of 177 right it doesn't make sense so that's drawn wrong if you're going up you want to go bottom to top now when do you use it top to bottom there is a moment at which you use it top to bottom and it is of course when you're in a downtrend you want this thing has been moving from let's say from the top here all the way to the bottom like so right so let me go ahead and it's gone from here all the way down to here right there it goes up down up it goes down to all these places right to every spot to each one of the lows that you can find but you pick one so I went from top to bottom right but it's not going to keep going down straight down it's going to retrace on its way down so if it goes down here it retraces 23% that would be 128.56 which is that first level right the red one that we saw earlier that is what the retracement means 23.6 is the first retracement level the first Fibonacci retracement level okay and then it has all the other ones 38 to the 5 the 61 8 as much as you want okay so when you're going from the top to the bottom it means that it's in a downtrend and you want to see how much it's going to bounce back up right so if we're going to go all the way down up down it retraces down it retraces down and it keeps going right it never goes straight down so every time that it hits a bottom it will retrace how much is it going to retrace to okay so it hit that 48 and it retraced to 78 that's a 23% retracement you can see there's a wick here a little bit of resistance right right there and it looks like that resistance served here as well with a little wick there so that is a 23.6% level Fib retracement so that is the retracement the extension is different the extension is how much is it going to extend in the trend direction right instead of how much it's going to retrace or come back from the trend the extensions is how far it's going to go up but the way you use this is or the reason you use this is when there is not enough history and but moving forward okay so for example let's say that you're here let me make sure I grab this tool you started here right and it went up and that's the next high and then it comes down right and you want to know if it's going to go up you can see it's got the same numbers as before the same Fibonacci numbers right so you go low high and then you pick another low these are the same numbers as you can see as before but then after the one there's one six one eight two six one eight etc right and those are the extension levels those are the ones that we want to place now let me see if I can place them so we want to pick a bottom and you can always extend this as long as you're grabbing the bottom of that red candle back there okay so it went down and you want to see if it's going to go up but you don't have all that history or yeah all that price action you only have let's say up to here right it reached up here you can see the three points one two three right there right okay that's the bottom that's the last point right there and you don't know if it's going to go how much higher it's going to go because the last point you have is not high enough right which would be right here right there you are already above the highest high you've had you know the all-time high once you reach your all-time high or all-time row because you can also use it to the downside you don't know where it's going to go you can't go back and look at swing levels high levels demand and supply zones and patterns and whatnot right because it simply doesn't exist so let's say that you wanted to find out well it we just broke the highest high or the all-time high what level is it going to go to that's what the 1 6 8 and 2 6 1 8 sorry the 1 6 1 8 and the 2 6 1 8 or 4 okay they are after the 1 all right so let's say that this is the one that we're going to pick as our low target or our third point or last point now these are the numbers that we're going to use as fib extensions all right so let's see here for example here we're here here's a low right so let's grab my raid tool let me show you if we were here we'd say okay so that's a level and we can go back a few weeks or months or years and say okay this is another level right so we have a low level now and you know sometime back we can use this as a price target because we are expecting it to go back up to that level right and that is how we normally draw support and resistance and as you move forward in time you can find more of these support and resistance levels right whether you use swing levels or pivots or you know whatever supply and demand zones that is how we figure out our price targets because we have historic targets but when we don't have a history right because it's a new stock and it does this it hits the bottom starts going up and then we're at a place like this well we don't have any price targets to the to the upside so we can't use any that is when we use the levels on the extensions all right and the last one we're going to look at is the pitch fork so let me go ahead and there's many different kinds of pitch forks but yeah I kind of did want to see these other ones but I'll leave you for another video let me just look for because this is getting to be a long one let me look for a place to use pitch forks the reason I like pitch forks is because it's kind of like a parallel channel with some guidance right so let me grab pitch work and you're gonna get a low and a high and a low three points just like the fib extensions and the fib retracings right and when you do that it gives you this pitch work right and it's got that red median line and then it's got to green and to blue which is basically two channels a green channel in the middle and a blue channel around the green channel so you get those three points the low high low and those are the ones that we're going to set alright so let me go ahead and just show you that it kind of looks like this right it's just a wider or multi-level parallel channel right hold on a second I oh this is the regression tool line hold on a second sorry about that okay so it's basically a parallel channel with an extra level right an extra channel within it alright so let's go ahead and sorry actually use the pitch fork okay then let me get this okay so we grab our pitch fork and remember three points low high and the low so we're gonna pick this low here this high all the way up here and this low right there and click and so there we go there's our pitch for it so it's telling us that those are the channels or lines that the price action should you know move through in the future right and just like with the parallel channel you'll want to stay a bit you don't stay away and not fiddle in the middle and basically take your trades on either the blue channel or the green channel lines right lows at the bottom I mean longs at the bottom and shorts at the top okay so that is basically what a pitch work is and there's different kinds but we're only gonna stick to this one right now let me use it to show you how it has fared in the past using a pitch work you can use it to the upside you can use it to the downside it doesn't matter let me shrink this price action a bit here and here we go okay this downtrend okay so let me grab a pitch for tool I go here my high below to a high right because we're going down this time and there we go that's our pitch work okay now as you can see here the red median line is right here and it did serve as resistance and support right there last second let me make this bigger because I don't know why it's so small okay there we go that's a lot better okay so you can see here it served as support right here although this is before we drew our last point so that was invalid but it did it did respect it you know both the bottom and the middle and but then here you can see it definitely respected the middle it uses support and resistance then resistance again breakthrough broke through but then immediately broke back down and then served a resistance resistance resistance and when it finally breaks through it does go above and then it serves again as support support support and it keeps on doing that until it tries and does break through the next one and also uses it as support and then finally breaks out so as you can see it you know it respects the basically the symmetry of price action in the market so that is how you use a pitchfork and I won't look at the other types of pitchforks but you can use them there's pitchforks for sideways movement right it's not only for up and down trends it's also for when you have a choppy horizontal or sideways market you can also use it in those situations okay so let me go ahead and get rid of these and basically that is it for the most used tools I'll try to use I'll try to get into more of these in future videos the ones I missed and some of the details of the ones I didn't miss so let's like for example the magnet tool for the pitchfork it basically snaps to the wicks and the bodies like that and then we'll switch this over to the different types of pitchforks in a later video okay but this is basically how like I mentioned earlier you would use the magnet tool on something like a pitchfork tool because it definitely helps snap to those levels more closely and instead of having you you know zoom in quite a bit onto each one on the different time frames okay so that is basically what you would use from here on in to see what the price action is going to do for AI in the next few days and weeks to come all right you basically expect it to stay in between here and you can see that it bounced off of that median line quite nicely let me see what's the wick did it bounce no that's I think that's actually the flag trend line that I drew let me go ahead and erase that line from down here there we go so it did wick up a little bit but it didn't quite reach the median line but that's what I would expect it to do I would expect it to hit the median line and then just you know pinball between that one and the green one and when it does reach the green one I would take a long along here towards the top right of the screen channel or or if it reached the blue line at the bottom but I would definitely just take profits here in the middle maybe one or two and then if anything let it ride all the way up to the blue part of the channel all right so that's how you would use pitchfork and the magnet tool all right so I think that's about what I wanted to cover in this video like I said we'll look into more details on these pitchforks in a future video and maybe a couple other tools that I missed like three drives pattern and the the head and shoulders and oh and this regression one yeah I knew I wanted to cover the regression one I'll go ahead and look at that one and these ones over here as well and some other ones okay so yeah these are my favorite so don't forget to subscribe to the channel and that way you'll be notified and I hope to see you in the next video have a great one make some green see you next time