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As a trader, you can use technical analysis software to predict the market movement by utilizing its charting, analysis, and reporting features. If you have learnt manual trading, you must realize how confusing it is to analyze many charts, prices, and volume data in order to make a profitable entry decision. Utilizing a technical analysis software can tremendously help you to make the very best entry and exit decisions. The functions of this software may vary from the one which merely assist you in specific area to the one that will automate all the process for you. These are several features of a technical analysis software: 1. Charting Charting is the bread and butter of technical analysis. Generally, no technical analysis is possible without charting. The chart form is a graphical interface that reveals price, volume, and technical analysis indicator such as Elliot Wave, Fibonacci, Gann Fan, etc. You can select a time frame to display based on your preferred analysis strategies. When choosing a time frame, you can pick from tick (seconds), minutes, daily, weekly, to monthly. Viewing historical data on a specific period of time is also possible; you just input the date range that you want. 2. Back Testing Back testing is employed when you are testing various trading strategies or systems. You just simply apply the strategies to a certain time period from the historical data and see how it performs against the market movement during that time. This is a good mehtod, but remember not to depend on it too much; it has proven to make many traders fails if not used carefully. This is because they tested their strategies with historical data and keep modified it so it can be a profitable strategy during that time period. Most of the time, these tester will forget to test their modified strategy in current market condition. This is not a wise decision; a strategy that works well in 2001 but fail at the current condition is as good as trash. If you have tested your strategy against historical data and it score good winning trades, create a demo account and test it again in the current market condition; If it still works and building steady profits in at least two months, you already have a strategy that works. 3. Alerts Alert software is used to notify the trader if certain conditions are met in the market. For instance: the prices has gone through support or resistance line. This notification will be send to the trader via screen pop up, email, short messages, instant messenger, or any other communication means. 4. Custom Indicators In a good technical analysis software, you can use, customize, or combine various standard indicators such as MVA (Simple Moving Average), EMA (Exponential Weighted Moving Average), LWMA (Linear Weighted Moving Average), etc. If you have better skills, creating a new indicator to support your strategies is not impossible. 5. Broker Interface There is technical analysis software that can be integrated to a brokerage platform so you can still trading with a familiar user interface. This will also make it easy to trade since you can just make an entry from the chart. Using technical analysis software can greatly help you to analyze the market, make entry and exit decisions, and predict future market movement. If you enjoy analyzing market and don’t want to depend on someone else for that, this software is invaluable. Chart could be the foundation of a technical analysis software. Learn the way to use it on using live chart for analysis. Don't forget that you can also make use of currency trading signal for entry point recommendation.
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techincal analysis software, forex, currency trading, investment, finance,
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