Drawing Tools on Olymptrade: How they work

The support level marks the point at which the asset value takes a U-turn and starts to climb up again.

When the asset value hits the support level, it bounces back and begins to rise anew.

The point at which the value of an asset starts to decline and reverse is known as the resistance level.

When the asset value starts to fall and reverse, it is referred to as the resistance level. The resistance level is the price point at which the asset value begins to reverse and decline.

The area where the chart is positioned, bounded by the inclined support and resistance levels, is known as the price channel.

To identify support, focus on the candlesticks' lowest shadows and draw a horizontal line through a few lowest prices.

For resistance, use the upper shadows and draw a line through the highest prices.

A trend line is like a horizontal line, but with a twist. It's a handy tool that you can use to mark support and resistance levels on a chart. Unlike the straight and rigid horizontal line, the trend line is flexible and follows the price, adapting to any direction it takes.

Traders often rely on the horizontal line as a handy tool to mark support and resistance levels on a chart. These levels play a crucial role in determining when the asset value starts to reverse and embark on an upward direction. When the resistance level is reached, the asset value takes a U-turn and starts its descent.

A vertical Line is commonly used in chart analysis to establish boundaries on the time axis. It serves various purposes, such as indicating the turning point in a trend or highlighting significant news on the chart. To create a vertical line, simply select a point on the chart. You can then adjust its position by moving it left or right.

A ray is a chart analysis instrument similar in function to the "trend line" instrument. It is also created with two points on the chart. However, unlike a trend line, a ray continues infinitely to the right beyond the line segment that creates it.

Fibonacci levels are levels of support and resistance which divide the chart into defined zones created on the principle of the Golden Ratio using the Fibonacci Sequence. That are derived from the highest and lowest price points, serving as a valuable tool across various time frames. The formation of these levels is contingent upon the market's condition, whether it's aligning with a trend or experiencing a correction.

A Fibonacci Fan is a powerful tool that displays support and resistance levels based on the Golden Ratio principle, derived from the Fibonacci Sequence. It helps you to identify key price levels formed by the minimum and maximum prices. They can be used for any time interval. In trading with Fibonacci Fans, you can trade on breakthroughs or on rebounds.

Wait until a candlestick crosses one of the Fibonacci Fan levels.

If the candlestick crosses one or more levels upward, open a “buy” trade.

If the candlestick crosses one or more levels downward, open a “sell” trade.

Wait until a candlestick rebounds from one of the Fibonacci Fan levels.

If the price bounces upward, open a “buy” trade.

If the price bounces downward, open a “sell” trade.