Baseline charts explained
Baseline chart type uses lines to display price levels and shaded area to show where price is above or below percentage baseline. This level serves as a pivotal point that can be used to assess how volatile the asset is.
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What are baseline charts
Baseline charts may be a good choice when you need to see how far up or down the asset has gone from a particular percentage level. It automatically adjusts to the chart area that is currently displayed on your Supercharts.
It's similar to a standard line chart, uses similar visualization techniques, while providing additional information on how a trend has changed over time.
For instance, if you see that the previously green area starts to narrow and the price is moving closer to a baseline, this might be a signal of a weakening trend.
Also, the baseline itself may serve as a support or resistance zone.
Baseline charts vs line charts
Line charts come in many variations, so each of them looks similar, however, serving different purposes.
These two chart types display similar data with the same inputs for price level, but due to the shaded area, they both have unique applications and benefits.
Baseline
- May be more informative for trend change recognition
- Helps to spot crucial support and resistance levels
- Works with all chart patterns, similar to line charts
Lines
- Doesn't show the exact point at which a pivot occurred
- Easier to read for general trend, but not its change
- Better for comparing multiple assets
Enabling the chart type
Once you are on the Supercharts, open the chart type menu on the upper toolbar and select "Baseline."
Settings
To make the most of the line chart, you can customize it according to your preferences and needs.
To do this, find the gear-like "Settings" button on the upper toolbar, and go to the "Symbol" tab.
The "Baseline" section lists settings specific to this chart type:
- Price source: Choose the price you want the chart to show. By default, it is set to close price, meaning the step line chart will be formed with the closing prices of an asset. According to your trading style, choose the desired price:
- Open: The chart will show the opening prices
- High: Shows only the highest prices
- Low: Shows only the lowest prices
- Close: Shows only the closing prices
- (H + L)/2: Shows the average of the highest and lowest prices
- (H + L + C)/3: Shows the average of the highest, lowest, and closing prices
- (O + H + L + C)/4: Shows the average of the opening, highest, lowest, and closing prices
- Top line: Choose the color, thickness, and opacity of the line that displays the upper border
- Bottom line: Color, thickness, and opacity of the line that displays the lower border
- Fill top area: Adjust the fill color and opacity of the top area
- Fill bottom area: Adjust the fill color and opacity of the bottom area
- Base level: Set value of the line level calculated as a percentage of pane height. By default, this value is set to 50%. 0% is the lower border of the pane and 100% is its upper border
Baseline charts in a nutshell
If you're a trend trader and need to spot and highlight support and resistance levels while aiming at simplicity and avoiding cluttering your chart — baseline charts may be the right choice for your analysis.
To make the most of them, you can apply various drawing tools and technical indicators and practice them in our risk-free trading simulator.
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