TradingView is an outstanding web-based charting and trading platform that allows traders to access financial markets, analyze data, and trade using a user-friendly interface. One essential metric that traders who focus on forex, indices, or cryptocurrencies calculate is the pip value. Pips are vital in estimating profit and loss for various trading strategies. In this article, we will explore how to calculate pips on TradingView using the built-in tools.

What are Pips?

A pip stands for “percentage in point” or “price interest point.” It represents the smallest price movement in the forex market. Essentially, a pip is a standardized unit of measurement that traders use to express changes in currency prices.

For most currency pairs, a pip is equivalent to 0.0001 or one one-hundredth of a percent. However, there are exceptions: pairs involving the Japanese yen (JPY), where a single pip is equivalent to 0.01.

How to Calculate Pips on TradingView

1. Open TradingView and Select Your Financial Instrument

To get started with calculating pips on TradingView, open up the platform and select your desired financial instrument by entering its symbol at the top of the page. For instance, if you want to trade the EUR/USD currency pair, type “EURUSD” into the search bar.

2. Set-up Your Chart Type and Price Scale

Choose your preferred chart type from the toolbar at the top of the screen (e.g., candles, bars or lines). Additionally, confirm that your price scale is set appropriately for your trading strategy.

3. Measure Price Movements Using the ‘Price Range’ Tool

Find TradingView’s ‘Price Range’ tool located under the toolbar icon showing parallel lines with arrows pointing outward (usually grouped with other measuring tools). This tool will enable you to measure price changes on the chart directly.

4. Calculate Price Changes in Pips

To calculate pips, click on the starting point (either high or low) from which you wish to measure the price movement and drag your cursor to the end point of the price motion. The ‘Price Range’ tool will display the number of price changes in percentage as default, but you can change it to pips.

Right-click on the percentage number that was displayed with your measurement, and a menu will pop up. Go to “Format” and look for the “Units” section. Select “Pips” from the dropdown menu under “Units.” TradingView will now show your measured price change in integers instead of percentages.

Conclusion

Calculating pips on TradingView is a straightforward and valuable skill for forex, indices, or cryptocurrency traders. Using the ‘Price Range’ tool allows you to measure price movements effectively and quickly determine your potential gains or losses for any given trade. By incorporating this technique into your trading analysis, you can make better-informed decisions and improve your overall trading performance. Happy trading!