Key Takeaways
Contents
❝TradingView offers hundreds of indicators, but most professional traders rely on just a handful of reliable tools. This guide covers the 5 most powerful free indicators available on TradingView — Zigzag, ADX, ATR, Pivot Point Standard, and William Alligator — with exact settings, visual explanations, and clear trading rules for each. Master these five and you will have everything you need to identify trends, measure volatility, find support/resistance levels, time your entries, and size your stop losses accurately.
5 Essential TradingView Indicators
Zigzag
Maps swing highs & lows · Draws trendlines automatically · Spots W and M patterns
ADX 25
Below 25 = sideways (avoid) · Above 25 = trending (trade) · Period 14
1.5× ATR
Multiply ATR by 1.5 to 2 for a volatility-based stop loss · Period 14
Alligator
Lines sleeping = avoid · Lines hunting = enter when price touches Lips (8MA)
Why Use Indicators on TradingView
TradingView is the most popular charting platform for retail traders worldwide, offering hundreds of built-in and community indicators. The challenge is not finding indicators — it is knowing which ones to use and how to use them correctly. Most traders fall into the trap of adding too many indicators, creating "analysis paralysis" where each indicator gives a different signal.
The solution is to use a small set of indicators that each serve a distinct purpose: one to identify trend direction and strength, one to find support and resistance, one to time entries, and one to size stop losses. The 5 indicators in this guide cover all these functions without overlapping.
All 5 indicators described here are completely free and available to every TradingView user on the free plan. To add any indicator: open a chart on TradingView → click "Indicators" at the top → search the indicator name → click to add. Settings can be adjusted by clicking the gear icon next to the indicator name.
The Right Way to Use Multiple Indicators
Rule of thumb for indicator use: each indicator should serve a unique purpose. If two indicators are telling you the same thing (e.g., both show "overbought"), you have not gained additional information — you have just added noise. Use indicators that complement each other rather than confirming each other.
Zigzag Indicator — Identifying Swing Highs and Lows
The Zigzag indicator is a filtering tool that connects significant price turning points — swing highs and swing lows — while ignoring the minor fluctuations in between. Unlike moving averages or oscillators, the Zigzag does not predict future price movement; it retrospectively identifies the most significant price pivots on your chart.
The primary use of the Zigzag is as a drawing aid. When you activate it on your chart, it automatically connects the major highs and lows with straight lines, making it visually obvious where the dominant trend has been running. Trendlines that would take minutes to draw manually are instantly visible.
A critical warning: the Zigzag indicator repaints. This means its last line (the one still forming) will move as new price data comes in. Always rely on completed Zigzag segments (those connected to at least 2 confirmed pivots) for your analysis. The most recent unconfirmed leg is subject to change.
Zigzag Indicator — Key Uses
Use 1 — Drawing Trendlines: Connect the Zigzag swing highs with a line for a descending trendline, or connect the swing lows for an ascending trendline. The Zigzag shows you exactly which highs and lows to connect.
Use 2 — Chart Pattern Detection: The Zigzag makes it easy to spot W patterns (double bottom) and M patterns (double top). A W pattern forms when the Zigzag creates two similar lows with a recovery in between — a classic bullish reversal. An M pattern forms when the Zigzag creates two similar highs with a pullback between them — a classic bearish reversal.
Use 3 — Swing Structure Analysis: By studying the Zigzag, you can quickly see whether the market is making higher highs and higher lows (uptrend), lower highs and lower lows (downtrend), or equal highs and lows (sideways range).
Zigzag Settings Guide
── SETTINGS ──────────────────────────────────────────────────────────
Depth → Minimum number of bars between pivot points
(Higher = fewer, larger pivots; Lower = more, smaller pivots)
Deviation → Minimum % price change required to create a new zigzag leg
(Default = 5; set to 3 for smaller trend identification)
── RECOMMENDED SETTINGS ──────────────────────────────────────────────
Daily charts: Depth = 12, Deviation = 5
1H charts: Depth = 10, Deviation = 3
15M charts: Depth = 7, Deviation = 2
── KEY WARNING ───────────────────────────────────────────────────────
The last Zigzag leg REPAINTS — it will change as new candles form.
Only trust COMPLETED legs (not the most recent unfinished one).
Never place trades based solely on the most recent Zigzag line.
Zigzag Is a Drawing Aid, Not a Trading Signal
The Zigzag is a drawing aid, not a signal generator. It tells you WHERE significant price pivots occurred — it does not tell you WHEN to buy or sell. Combine it with other indicators (ADX for trend confirmation, Alligator for entry timing) to build a complete trading strategy.
ADX Indicator — Trend Strength Filter
The Average Directional Index (ADX) is one of the most important — and most misunderstood — indicators in technical analysis. Created by J. Welles Wilder (who also created RSI and ATR), the ADX measures the STRENGTH of a trend, not its direction. Many traders make the mistake of using ADX to determine whether the market is going up or down; that is not what it does.
ADX answers one question: "Is the market currently in a trending mode or a sideways (ranging) mode?" The answer determines whether you should be looking for trend-following trades or whether you should stay on the sidelines.
The ADX oscillates between 0 and 100. The single most important level is 25. ADX below 25 = sideways market (low trend strength, high false-signal risk). ADX above 25 = trending market (strong directional momentum, lower false-signal risk). The higher the ADX value, the stronger the trend — readings above 50 indicate a very strong trend.
"ADX above 25 does not tell you whether the market is going up or down. It only tells you that the market IS going somewhere strongly. Use other tools (price action, moving averages) to determine the direction.
ADX Indicator — Complete Settings Guide
── SETTINGS ──────────────────────────────────────────────────────────
Period = 14 (industry standard; do not change this)
Smoothing = RMA (default for Wilder's original indicator)
── THE LEVEL 25 RULE ─────────────────────────────────────────────────
ADX < 25 → Sideways market — NO TRADE
High probability of false breakouts, whipsaws
Trend-following strategies fail in this environment
ADX > 25 → Trending market — TRADE
Price has direction — follow the trend
Lower false-signal risk; momentum trades work well
ADX > 50 → Very strong trend — ride it
ADX > 75 → Extremely strong trend (rare)
── WHAT ADX DOES NOT DO ──────────────────────────────────────────────
✗ Does NOT tell you the direction (up or down)
✗ Does NOT give buy or sell signals
✗ Does NOT tell you when a trend will end
✓ Only tells you: trending (>25) or sideways (<25)
How to Use ADX in Your Trading
- 1
Add ADX to Your Chart (Period 14)
Open TradingView, click Indicators, search "ADX" and add "Average Directional Index (ADX)". Set the period to 14. The indicator will appear below your price chart as an oscillating line. You only need the ADX line itself — the +DI and -DI lines are optional.
💡 If you see three lines (ADX, +DI, -DI), you can hide +DI and -DI in the indicator settings to keep the chart clean. Focus only on the ADX line.
- 2
Draw the Key Level at 25
Add a horizontal line at the 25 level on the ADX panel. This is your go/no-go filter. Below 25 = stay out. Above 25 = look for trades in the trend direction.
💡 Some traders also draw a level at 20 as an early warning when ADX is approaching the trending zone, and at 40 for very strong trend conditions.
- 3
Identify the Market Phase
Before any trade, glance at the ADX. If it is below 25 and relatively flat, the market is in a sideways range — avoid trend-following strategies. If ADX is above 25 and rising, the trend is strengthening — ideal for trend-following trades.
💡 Rising ADX = trend gaining strength. Falling ADX = trend weakening, even if price is still moving in the same direction.
- 4
Combine with a Direction Indicator
Since ADX does not tell you direction, pair it with a direction indicator. Classic combinations: ADX above 25 + Price above 200 MA = uptrend confirmed (look for buys). ADX above 25 + Price below 200 MA = downtrend confirmed (look for sells). ADX above 25 + William Alligator in hunting phase = full confirmation to trade.
💡 The ADX + Alligator combination is covered in detail in the combining section at the end of this guide.
ATR Indicator — Volatility-Based Stop Loss
The Average True Range (ATR) indicator, also created by J. Welles Wilder, is the professional trader's standard tool for measuring market volatility and sizing stop losses. Unlike a fixed stop loss (e.g., "always 50 points"), the ATR-based stop loss adapts to current market conditions — it widens when the market is volatile and narrows when the market is calm.
ATR calculates the average of the True Range over a specified number of periods. The True Range of a candle is the largest of: (1) Current High minus Current Low, (2) Absolute value of Current High minus Previous Close, (3) Absolute value of Current Low minus Previous Close. This accounts for overnight gaps and opening jumps.
The ATR value itself is simply a number representing the average range of price movement per candle. If you are trading on a 1-hour chart and ATR reads 28, it means the average candle on that chart moves 28 points from its high to its low. This number is your baseline for stop loss placement.
The standard ATR stop loss formula is: Stop Loss Distance = 1.5× to 2× ATR. Place your stop loss this distance below your entry (for a long trade) or above your entry (for a short trade). Using 1.5× ATR is more conservative and appropriate for stable markets (Nifty, Bank Nifty, stocks). Using 2× ATR is wider and appropriate for volatile markets (crypto, high-beta stocks, breakout plays).
Example: You are trading a 1-hour Bank Nifty chart. The ATR reads 42 points. For a long entry, your stop loss would be: 1.5× 42 = 63 points below entry (conservative) or 2× 42 = 84 points below entry (wider, for volatile sessions). This ensures your stop is outside the typical noise of the market, reducing the chance of being stopped out by a random spike before the trade moves in your favour.
ATR is also useful for position sizing: if your maximum risk per trade is ₹5,000 and your ATR-based stop loss is 63 points on Bank Nifty (which has a lot size of 15), your maximum position size is ₹5,000 ÷ (63 × 15) = approximately 5 lots.
ATR Stop Loss Quick Reference
── FORMULA ───────────────────────────────────────────────────────────
ATR Stop Loss (Long) = Entry Price − (Multiplier × ATR)
ATR Stop Loss (Short) = Entry Price + (Multiplier × ATR)
── MULTIPLIERS ───────────────────────────────────────────────────────
1.5× ATR → Conservative (Nifty, Bank Nifty, stable stocks)
2.0× ATR → Standard (volatile sessions, breakout trades)
2.5× ATR → Aggressive (crypto, high-beta stocks)
── EXAMPLE (1H Bank Nifty) ───────────────────────────────────────────
ATR = 28 points (ATR value on 1H chart)
Entry = 45,000
Conservative SL (1.5×): 45,000 − (1.5 × 28) = 44,958
Standard SL (2.0×): 45,000 − (2.0 × 28) = 44,944
── SETTINGS ──────────────────────────────────────────────────────────
Period = 14 (do not change)
Smoothing = RMA (Wilder's original — matches ADX smoothing)
Why Fixed Stop Losses Fail (and ATR Solves It)
Never use the same fixed stop loss for all trades. A 50-point stop that worked during a low-volatility session will be instantly hit during a high-volatility expiry day. ATR automatically adjusts — when markets are calm, ATR will give you a tighter stop; when markets are volatile, ATR will give you a wider stop. This is the correct approach.
Pivot Point Standard — Auto Support and Resistance
The Pivot Point Standard indicator automatically calculates and plots horizontal support and resistance levels using the previous trading session's High, Low, and Close prices. It is one of the most widely-used tools by institutional traders, floor traders, and professional intraday traders because it provides objective, pre-calculated price levels that do not require any manual drawing.
The central level is the Pivot Point (PP), calculated as (Previous High + Previous Low + Previous Close) ÷ 3. From the Pivot, the indicator calculates two resistance levels above (R1, R2) and two support levels below (S1, S2) using specific formulas. These levels represent areas where professional traders commonly place limit orders, making them self-fulfilling to some degree.
The most practical use: at the start of each trading session, the pivot levels are already plotted on your chart. When price approaches R1 from below, it often stalls or reverses — a potential short setup or profit-taking point. When price approaches S1 from above, it often bounces — a potential long entry. These levels serve as pre-planned trade areas without any real-time analysis required.
Pivot Point Formula & Levels
── CALCULATION (Daily Pivot) ─────────────────────────────────────────
PP = (PH + PL + PC) ÷ 3
R1 = (2 × PP) − PL
R2 = PP + (PH − PL)
S1 = (2 × PP) − PH
S2 = PP − (PH − PL)
PH = Previous High · PL = Previous Low · PC = Previous Close
── LEVEL SIGNIFICANCE ────────────────────────────────────────────────
PP (Pivot) → Key neutral zone; bullish if price is above, bearish below
R1 → First resistance; price often pauses or reverses here
R2 → Second resistance; larger targets, less frequent hits
S1 → First support; price often bounces here
S2 → Second support; deeper pullbacks, strong bounce zone
── TRADINGVIEW SETTINGS ──────────────────────────────────────────────
Type: Standard (Pivot Point Standard)
Period: Daily (change to Weekly for bigger S/R)
Lookback: 1 (shows only today's levels — cleaner chart)
Untick: S3, R3, S4, R4, S5, R5 (these are rarely reached)
Adding and Using Pivot Points in TradingView
- 1
Add the Indicator
In TradingView, click Indicators → search "Pivot Point Standard" → add it. Make sure to select "Pivot Point Standard" specifically — not "Pivot Points High/Low" which is a different indicator.
💡 The Pivot Point Standard is the traditional floor-trader pivot that institutional traders use. It is the most widely-followed version.
- 2
Configure Settings for Clean Charts
Open the indicator settings (gear icon). Set Period to "Daily" for intraday trading, "Weekly" for swing trading. Set Lookback to 1 to show only the current session's levels. In the Levels section, untick S3, S4, S5, R3, R4, R5 — these extreme levels are rarely meaningful.
💡 You can also colour-code the levels: make R levels red, S levels green, and PP yellow. This makes it instantly clear whether price is above or below the central pivot.
- 3
Trade S1 Bounces and R1 Rejections
The most reliable pivot setups: (1) Price falls to S1 + a bullish candlestick forms at S1 = buy signal with target at PP, then R1. (2) Price rises to R1 + a bearish candlestick forms at R1 = sell signal with target at PP, then S1. Always wait for a candlestick confirmation before entering — do not buy just because price touched S1.
💡 The pivot levels are strongest during the first half of the trading session (morning). As the session progresses, price tends to establish its own direction and the pivot levels become less significant.
- 4
Switch to Weekly for Swing Trading
For swing traders who hold positions for multiple days, switch the Period setting to "Weekly". This calculates pivot levels from the previous week's range. Weekly S1 and R1 levels are major decision points where large positions are entered or exited by institutional traders.
💡 Some advanced traders plot both Daily and Weekly pivots simultaneously to find confluence zones — levels where a Daily pivot level matches a Weekly level. These confluence zones are particularly strong.
William Alligator — Sleeping vs Hunting Phases
The William Alligator indicator was developed by Bill Williams and is built on three smoothed moving averages (SMAs) that use — not coincidentally — Fibonacci numbers for their periods: 8, 13, and 21. The three lines represent different parts of an alligator's mouth: the Jaw (slowest, blue, 21-period), the Teeth (medium speed, red, 13-period), and the Lips (fastest, green, 8-period).
The brilliance of the Alligator is its simple visual metaphor: when the three lines are intertwined or close together, the alligator is sleeping — it is not hungry, and you should not trade. When the three lines begin to spread apart and separate (the alligator "opens its mouth"), the market is waking up and entering a trending (hunting) phase — this is when you trade.
This metaphor maps directly to real market phases. Markets spend approximately 70% of their time in sideways, choppy, range-bound conditions — this is when the Alligator lines are close together and trading is dangerous. The remaining 30% of the time, markets trend — this is when the Alligator lines separate and the best trading opportunities appear.
William Alligator — Settings & Line Guide
── SETTINGS (TradingView defaults — do not change) ──────────────────
JAW → Blue line · 21-period Smoothed MA · offset 8 bars right
TEETH → Red line · 13-period Smoothed MA · offset 5 bars right
LIPS → Green line · 8-period Smoothed MA · offset 3 bars right
All 3 periods are Fibonacci numbers: 8, 13, 21
── SLEEPING PHASE ───────────────────────────────────────────────────
Lines are intertwined, close together, or crossing each other
Market is ranging — no clear direction
Rule: DO NOT TRADE (avoid getting eaten by the sleeping alligator)
── HUNTING PHASE ────────────────────────────────────────────────────
Lines are spread apart and moving in the same direction
Lips (green) on top = uptrend (buy)
Jaw (blue) on top = downtrend (sell)
Rule: TRADE IN THE DIRECTION of the spread
── ENTRY RULE ───────────────────────────────────────────────────────
Wait for price to pull back and touch the Lips (green line)
Enter in the trend direction at the Lips
Stop loss: below the Teeth (red line) for longs
above the Teeth (red line) for shorts
The entry timing with the Alligator is specific: you do not buy at the first sign of spreading lines. Instead, you wait for the initial trend move (which you may miss), then wait for a pullback — price retracing back toward the moving averages. When price pulls back to the Lips (the fastest line, green), that is your entry signal. The Lips at 8 periods is the most responsive to current price, making it the best entry level among the three.
For a long trade: the Alligator must be in hunting phase (lines spread with Lips on top), price pulls back to touch or come close to the green Lips line, enter long, stop loss below the red Teeth line. The space between Lips and Teeth is your risk; the space between your entry and the previous swing high is your reward.
For a short trade: lines spread with Jaw (blue) on top and Lips (green) on the bottom, price pulls up (retraces) toward the Lips (green line), enter short at the Lips, stop loss above the Teeth (red line).
ADX + Alligator: The Complete Two-Indicator System
The Alligator and ADX are a natural pair: ADX above 25 confirms a trend exists (the market IS moving somewhere), while the Alligator tells you WHEN to enter that trend (when price pulls back to the Lips during the hunting phase). Use ADX as your trend filter first, then switch to the Alligator for entry timing.
Using All 5 Indicators Together
Each of the 5 indicators serves a different role. When combined, they form a complete trading system that covers every aspect of a trade decision: trend identification, trend strength, entry timing, support/resistance, and stop loss sizing.
The workflow for a complete trade setup using all 5 indicators proceeds in a specific order. Start with the broadest filters and work down to the specific entry:
Complete 5-Indicator Trade Setup
- 1
Step 1 — Identify the Trend with Zigzag
Open your chart and activate the Zigzag indicator. Look at the completed Zigzag segments. Are the swing highs getting higher (uptrend)? Are the swing lows getting lower (downtrend)? Or are the pivots at similar levels (sideways)? The Zigzag gives you the macro structure of the market at a glance.
💡 Use the Zigzag on a higher timeframe (daily chart) to identify the bigger trend, then drop to a lower timeframe (1H, 15M) to find entry setups.
- 2
Step 2 — Filter with ADX (>25 Rule)
Check the ADX reading. If ADX is below 25, the market is in a sideways phase regardless of what the price chart looks like. Do not look for trade setups. Wait for ADX to rise above 25 before continuing. If ADX is above 25 and rising, proceed to the next step.
💡 Rising ADX even from 22 toward 25 is an early signal that a trend is developing — you can prepare your setup but wait for the actual 25 cross before entering.
- 3
Step 3 — Confirm Direction with Alligator
Check the Alligator. Are the lines spread apart (hunting phase)? If yes, which line is on top? Lips (green) on top = uptrend, look for longs. Jaw (blue) on top = downtrend, look for shorts. If lines are tangled or close together, do not trade even if ADX is above 25.
💡 The ideal setup: ADX above 25 AND Alligator in hunting phase AND Zigzag showing the same trend direction. All three aligned = highest-confidence setup.
- 4
Step 4 — Enter at a Pivot or Alligator Lips
Now check the Pivot Point levels. Is price approaching an S1 (for long) or R1 (for short)? A pivot level coinciding with the Alligator Lips creates a high-probability entry zone. If price is not at a pivot level, enter when price pulls back to the Lips (green line) during the hunting phase.
💡 Convergence of entry signals = higher probability. Pivot S1 + Alligator Lips pullback + ADX >25 + Zigzag uptrend = four confluences pointing to the same entry. Trade it with higher confidence.
- 5
Step 5 — Size Your Stop with ATR
Once you have your entry price, check the ATR value. Multiply by 1.5 (conservative) or 2 (standard) to get your stop loss distance. Place the stop this distance below your entry (long) or above your entry (short). Do not use the Alligator Teeth as your only stop reference — combine it with the ATR check to confirm the stop makes sense for current volatility.
💡 If ATR says 50 points but the Alligator Teeth is only 20 points away, use the ATR stop (50 points). If the Alligator Teeth is 60 points away and ATR says 50, use the Teeth level as your stop — it is slightly wider which gives the trade room to breathe.
Indicator Role in Your Trading System
Key Takeaways
Frequently Asked Questions
What is the best TradingView indicator for beginners?
For absolute beginners, start with just two indicators: ADX (period 14) and Pivot Point Standard. ADX tells you whether the market is trending or sideways — this single filter prevents the most common beginner mistake of trading in choppy conditions. Pivot Points give you automatic support and resistance levels without any manual drawing. Master these two before adding the Zigzag, ATR, and Alligator.
Can I use ADX to know if the market is going up or down?
No. ADX only measures the STRENGTH of a trend, not its direction. A rising ADX above 25 means the market has strong momentum — but that momentum could be upward or downward. To determine direction, use price action (is price making higher highs and higher lows, or lower highs and lower lows?), moving averages (is price above or below the 21 MA?), or the William Alligator (which line is on top?). ADX answers "is there a trend?" — other tools answer "which direction?"
How do I set my stop loss using ATR?
First, check the ATR value on your chart (period 14). For a long trade, subtract 1.5× ATR from your entry price to get a conservative stop, or 2× ATR for a wider stop in volatile markets. Example: entry at 45,000, ATR = 30, conservative stop = 45,000 − (1.5 × 30) = 44,955. For a short trade, add 1.5–2× ATR to your entry price. The key advantage over a fixed stop: ATR automatically adjusts for current market volatility — your stop widens on volatile days and narrows on calm days.
What does it mean when the Alligator lines are tangled?
Tangled Alligator lines (crossing each other, close together) indicate the "sleeping" phase — the market is moving sideways without a clear trend. This is the danger zone for trend traders. In this phase, the three moving averages frequently cross each other generating false signals, stop losses get hit by random price movements, and risk-reward ratios deteriorate. The correct response: step away from the chart and wait. The Alligator will spread again when a trend develops — be patient and only trade the hunting phase.
How do I use Pivot Points with the Alligator indicator?
These two indicators complement each other perfectly. Pivot Points tell you WHERE important price levels are (S1, R1 etc.); the Alligator tells you WHEN a high-probability entry is forming. The ideal setup: (1) Alligator is in hunting phase (lines spread, uptrend). (2) Price pulls back toward both the Pivot S1 level AND the Alligator Lips (green line) at the same price zone. (3) This confluence of support creates a high-probability long entry. Enter at the convergence zone with stop below the Alligator Teeth.
Does the Zigzag indicator give buy and sell signals?
No, the Zigzag indicator does not generate buy or sell signals directly. It is a drawing tool that identifies significant swing highs and lows in retrospect. Its value is in making market structure visually obvious — you can instantly see trendlines, higher highs/lows, and chart patterns like double tops and double bottoms. Use Zigzag for structural analysis, then use ADX and Alligator for actual trade signals.
What timeframe works best for these 5 indicators?
The 1-hour and 4-hour charts offer the best balance between signal quality and trading frequency. On the 1-hour chart: ADX above 25 signals are reliable, Alligator hunting phases last long enough to capture meaningful moves, and ATR values provide actionable stop distances. Daily charts work well for swing traders (holding 2–5 days). The 5-minute and 15-minute charts are too noisy — ADX and Alligator generate frequent false signals at those timeframes. If you must trade intraday, use 15M minimum and combine with a higher-timeframe trend filter.
Are these indicators free on TradingView?
Yes, all 5 indicators described in this guide — Zigzag, ADX, ATR, Pivot Point Standard, and William Alligator — are built-in indicators available to all TradingView users including the free plan. No paid subscription is required. To add any of them: open a chart on TradingView, click "Indicators" at the top of the chart, search the indicator name, and click to add it. The settings can be adjusted by clicking the gear icon that appears next to the indicator name when you hover over it.
Related in price action
Keep building your knowledge
Up Next
Master Volume Analysis: Complete Trading Guide for Stocks, Forex and Crypto