Differences between standard indicators and custom indicators on the TradingView platform

Introduction

 

TradingView is one of the most popular and functional online platforms for trading in financial markets. One of the key elements that ensure traders' success is technical indicators. TradingView provides access to an extensive collection of standard indicators and also allows users to create their own custom indicators. In this article, we will explore the distinctions between standard and custom indicators on the TradingView platform.

 

Standard Indicators

 

Pre-installed tools: TradingView offers a rich selection of standard indicators, including popular technical indicators such as moving averages, MACD, RSI, stochastic, and others. These indicators are developed and maintained by the TradingView team, ensuring a high level of reliability and up-to-date data.

 

Ease of use: Standard indicators are readily available from the indicator settings window in the TradingView platform. Users do not need to have deep knowledge of programming or understanding of algorithms to apply these indicators in their analysis.

 

Support and updates: As standard indicators are developed by the TradingView team, they receive regular updates and improvements. Users can be confident in receiving reliable data and the latest features.

 

Large user base: Using standard indicators provides uniformity and a common reference point for many traders on the platform. This facilitates easier exchange of ideas and strategies among TradingView users.

 

Custom Indicators

 

User Development: TradingView provides Pine Script functionality - its own programming language that allows users to create their own indicators and strategies. This gives traders almost unlimited possibilities for developing indicators that match their unique needs.

 

Personalization: Custom indicators allow traders to adapt them to specific market conditions or trading strategies. This provides a significant advantage, as markets can be highly diverse, and a one-size-fits-all indicator may not always be suitable for all situations.

 

New Ideas and Approaches: User-created indicators are often based on new ideas and approaches to market analysis. This allows traders to explore unconventional or unique methods of price prediction.

 

Public Library: The TradingView platform has an extensive public library of custom indicators. However, despite its scale, the quality and reliability of indicators can vary significantly.

 

Conclusion

 

Standard indicators and custom indicators in the TradingView platform have their own advantages and disadvantages. Standard indicators offer reliability, ease of use, and a large user base, which facilitates knowledge exchange. Custom indicators, on the other hand, allow traders to create unique tools that cater to their individual needs and strategies.

The main advantage of custom indicators is that they utilize methods available to a small group of people, unlike standard indicators. As a result, you won't be part of the same liquidity as the majority.

The best choice depends on the preferences and experience of each trader. Some traders may prefer to use standard indicators as the basis of their analysis, complementing them with custom indicators for greater personalization. Meanwhile, other traders may rely entirely on their own developments.

Regardless of the choice, it is essential to remember that successful trading requires not only the proper use of indicators but also a deep understanding of the market, thorough analysis, and a strategic approach to trading. Indicators are just tools, and successful traders know how to use them in combination with other factors to make informed decisions.

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