Welcome to How to Use Draw Tools
Draw Tools allow you to draw text and trendlines on charts. Click in the chart you want to draw a tool and click either "Main Menu" ==> "Draw Tools" or right click in an empty area of the chart and select "Right Click Menu" ==> "Draw Tools"
Draw Tools are added to the template of each chart, so if you save the template it will remember all the draw tools you draw in the window. Draw tools are marked for what symbol is in the chart, so if you draw a trendline for a chart of IBM and one for a chart of AAPL, the template will remember both of them, so when you call up both symbols the chart will show each respective trendline. When you save a template it will save all the draw tools with it.
Draw Tools
Clear Draw Tool - This will erase all draw tools on the chart for the current symbol, if the template has draw tools for other symbols they will not be deleted. If you will to delete all draw tools (along with all studies and signals), select in the chart "Right Click Menu" ==> "Clear All Studies".
Pointer - This is the default draw tool state and means the draw tool drawing mode is turned off.
Crosshair - This will put a cross hair under the mouse in chart and will show you the price and date below the mouse. Just click on the "Pointer" button to turn it off. If you don’t like the price and date box, you can turn it off in "Menu Circle" ==> "Preferences" ==> "General" ==> "Show Crosshair Labels". You can control also the width, color, and style of the line in "Menu Circle" ==. "Preferences" ==> "Appearance" ==> "Draw Tools". This also applies for the rest of the draw tools below.
Draw Text - This will place a box on the chart where you can type in text to highlight something in the chart. Click "Draw Text" then click once in the chart where you want the label to be.
At this point you can move the text box around on the chart and if you type on the keyboard it will be added inside the textbox. When you have finished typing and have the box where you want it, click the left mouse button again to lock it into place. If you want to move or change the text click the left mouse while over the draw tool and it will toggle it active again.
Close Trendlines - This will toggle an automatic trendline drawing program on and off. Every time a bar closes the program will calculate where the most relevant trendlines are connecting close price and will redraw them.
Since the trendline calculation uses all the pricing data that was downloaded, this is a nice feature because it allows you to see trendlines from the beginning of the chart even though they might not be visible in the current window. When you turn off "Close Trendlines" all the close trendlines will be removed but it will not affect other types of draw tools on the chart.
High/Low Trendlines - This is the same as the Close Trendlines button except the trendlines on top of the chart will use the bars highs and the ones below the chart will use the bars low.
Segment - The will draw a line between two points. To draw this line, click "Segment", then click and hold the left mouse button down in the chart where you want the line to start, then drag the mouse while holding the left mouse button down to where you want it to end and then release the left mouse button to complete the segment.
The segment is unique in that it has the useful feature of showing the percent gain or loss between the two points as well how many bars are between the two points while you have the left mouse button held down.
Ray - The ray is similar to the segment in that the first point is where the line starts, however, the line will continue through the second point into infinity. You draw this line exactly like the segment.
Extended Trendline - The extended trendline is similar to the segment except the line will extend through both points into infinity. You draw this line exactly like the segment.
Horizontal Line - The horizontal line will draw a perfectly horizontal trendline across the entire chart. Click on Horizontal Trendline, then left click in the chart approximately where you want the line. Now you can move the line up and down and it will also show you what the current price is.
This is useful for marking support and resistance areas on the chart as well as places markers where you may have bought, sold, or placed a stop in a trade.
Andrew's Pitchfork - This study connects a line between a low and a high and generates a high and low support resistance line to mark the potential boundaries of the current uptrend or downtrend. Find a major low or high, this will be your last point. Click and hold the left mouse button on the end of the first test of the high or low(A), then drag the mouse to the first high or low after the start of the trend (B) and release then left mouse button, then drag the mouse to the major high or low (C) and press the left mouse once to complete the draw tool.
As long as the trend bounces off the support and resistance the trend remain intact.
Linear Regression - This will draw a regression line (a least squares best fit line) between two points. To draw this line, click Linear Regression, then click and hold the left mouse button down in the chart where you want the line to start, then drag the mouse while holding the left mouse button down to where you want it to end and then release the left mouse button to complete the segment.
Fibonacci Retracement - This draw tool shows where all the Fibonacci retracement levels are for a move between a high and low. Draw this line exactly like a segment but connect a high and a low starting with the beginning of the move.
The draw tool will show Fibonacci resistance areas where the counter trend move may end.
Fibonacci Projection - Like the Pitchfork this tool is used for measure how far a potential wave 3 must go. In order to draw this you must have a low or high with a completed test of the low or high. First, click and hold the left mouse button down in the chart over the main low or high (A), then drag the mouse to the first reaction high or low after the main one (B) and release the left mouse button, and, finally, drag the mouse over the test of the high or low(C) and click the left mouse button to complete the draw tool.
The horizontal lines will show Fibonacci levels where the move may end.
Fibonacci Fans - This draw tool connects between a high and a low and shows where a retracement may end. Draw this line exactly like a segment but connect a high and a low starting with the beginning of the move.
Each of the lines represents area of potential reversal.
Fibonacci Intervals - This tool will mark Fibonacci intervals of time from between a high and a low. Draw this line exactly like a segment but connect a high and a low starting with the beginning of the move.
Time Cycles - This draw Tools draws an regular repeating interval of vertical lines extending outward from two lows. Click and hold the left mouse button down on the first low then drag the mouse to the next low and release the left mouse button. If there is a regular repeating cycle in the stock price you can use this to find the next low which should be a the next line. Highs do not work nearly as well as lows for cycle analysis.
Price Intervals - This draw Tools draws an regular repeating interval of horizontal lines extending outward from two support/resistance areas. Click and hold the left mouse button down on the first point then drag the mouse to the next point and release the left mouse button.
Resizing and Moving Draw Tools
After a draw tool has been drawn you can adjust it at any time by moving the mouse cursor over the draw tool until you see a hand pointing. Then you can left mouse click and you will see the draw tool appear with its sizing boxes
If you click and hold the left mouse down inside the sizing squares you can move that square to wherever you want. Just release the mouse button and it will stay there. If you want to move the entire draw tool, click and hold the left mouse button down on the line and move the entire draw tool. Release the left mouse button to keep the draw tool in its new place.
Right Click Draw Tool Menu
When you move the mouse over a draw tool and the cursor turns into a pointing hand, you can right click and get some options to manipulate the draw tool.
Duplicate Draw Tool - This is mainly for straight trendlines but will duplicate any draw tool. When this is applied to a segment, ray, or extended trendline it will create a duplicate line that is parallel to the first one. Just move the mouse to where you want the new draw tool and click the left mouse button to make it permanent. Using this you can make parallel trendlines.
Remove Draw Tool - Selecting this will remove the draw tool under the mouse from the chart.
Draw Tool Properties - This will open a small dialog that will allow you change the look of the draw tool.
Line Color - The color of the line.
Line Width - How many pixels wide the line is. Because you can have a lot of support resistance line that may be very close together, it is recommended that this only be 1.
Line Style - Determines if the line is to appear solid, dotted, or dashed.
Line Color Alpha - This determines how transparent the line is. A value of 255 is completely opaque, a value of 0 is completely transparent.
Add Trendline Alert - A trendline alert triggers when price crosses the trendline from one side to the other. When the alert starts it will automatically figure out which side of the trendline it is on and will trigger when it crosses to the other side. Once the alert is set you can view it in the Alert Manager. For more information see "How To Use Alerts".
Template Editor
You can see all the alerts in a chart template by clicking in the chart empty area and selecting "Right Click Menu" ==> "Templates" ==> "Edit Template". You will see the following which shows everything in the template.
In the left hand pane is a list of all the draw tools in the template under Draw Tools. To the right of each draw tool is a list of properties. You can right click on a draw tool and select "Delete Draw Tool" to remove it or click on the draw tool and then click "Delete Draw Tool" from the top menu.
You can change various properties of a draw tool from this property window on the right. Click on a property in the right hand window to see a description of the property at the bottom of the property window. The X,Y coordinates should be changed on the chart, they are only listed to help identify a draw tool on the chart.
Preferences
How the draw tools initially draw can be set in "Menu Circle" ==> "Preferences" ==> "Appearance" ==> "Draw Tools" or "Fibo Levels".
Most of draw tools have a common set of choice to control the width, style, color, and transparency of the draw tool lines.
Line Color - the color of the line.
Line Color Alpha - The transparency of the line. A value of 255 is completely opaque, a value of 0 is completely transparent.
Line Width - How many pixels wide the line is.
Theme Line Color - If set to true this chart line will use a predefined color set from the preferences theme. This allows automatic changing of colors when changing from a theme with a light back ground to one with a dark background and visa versa.
The Draw Text has a few more options to set the color of its background, border, and text color.
If you want to change the colors in the Fibonacci Draw Tools, click "Fibo Levels" and change the default width, style, color, and transparency of lines using Fibonacci levels.
Note: If you want your changes to stay even after changing themes (see "Creating a Theme") or installing a new update, you need to also click in the top toolbar "Save Theme" and save the theme to a new name, then change the "Preferences" ==> "Setup" ==> "Theme - Display" to the name of your new Theme.