Click on "joint tool".
Set the appearance of the bones : red diamonds.
Create the bones.
The coordinate system of a joint is relative to the parent joint.
For example : if the position of the shoulder is (0, 3, 0). Then the position of the elbow, relatively to the shoulder, is (0, -3, 0) - and not (0, 0, 0).Add a "skeleton tag" to the arm.
Result
Drag and drop the 3 joints to the "skeleton grid". You just need to drag and drop the "shoulder joint".
Now you can bend the elbow