A lot of people are skeptical about technical analysis trading. That’s why they think it is a complicated and challenging strategy to implement as a trader. Unfortunately, this isn’t the case.
Technical trading is not difficult but a highly effective way to trade shares or any other financial product in the right direction. A good software tool can make things easier for you and give you the trading edge needed to become a successful speculator in a short time frame.
Forex trading is traditionally the domain of day traders with a financial background and a deep understanding of how the markets work.
It can be challenging for beginner traders just starting to learn about how to trade forex without having a mentor or advisor at their side. That's why we've put together this guide on the best technical analysis software you should use.
1- Openly available: Trading Central
The best software for beginners by far, Trading Central, provides stock data from Reuters to make it easier for newbies to get their bearings when trading currencies online. The software uses candlesticks to show the most recent prices; from there, you can make a trading decision. It even provides free training with over 60 hours of video tutorials for any new trader looking to hone their skills.
2- Openly available: MetaTrader 4
Meta Trader 4 is an excellent option for those who are more experienced in the markets and want professional-grade software to help them trade forex online. This solution can be used on its own or as part of an automated trading solution, where its true power lies. MT4's most significant advantage is that it works with all brokers, not just one or two as so many other options do.
When rolled up with a trading platform such as Meta Trader 4, it is possible to trade on multiple brokers simultaneously, leading to better overall results. It can also be used with MT5, an advanced version of MT 4 that combines it with a charting engine that can draw down-to-the-tick detail, support and resistance lines, and the ability to draw trend lines using Fibonacci tools.
3- Openly available: TD Ameritrade's Stock Screener
An excellent way for beginners to get started in the markets without worrying about losing money due to bad trades is using a software program like TD Ameritrade's Stock Screener. It's ideal for those who are interested in investing or trading stocks on their own because it allows users to search for stocks based on ten different parameters.
4- Openly available: An Overview of the Volatility Surface
Volatility is at the heart of everything that traders do, from speculating which direction a stock's price will move (high volatility = high risk) to hedging against risky positions (low volatility = low risk) to just about everything else in between.
Derivatives traders can use volatility to measure how likely a contract will end up in the money, while options traders use it to create spreads and other sophisticated tools.
It is a program used by professionals in the hedging and derivatives market. If you're an options trader, this is a must-have program. It can be used in conjunction with another tool we'll talk about in a moment, but it's essential to ensure that your trades are safe and high-profit opportunities. The only downside is that it costs $2000 to license.
5- Metaquotes
The Metastock Trading Platform is a top-rated charting program that many traders have used for years. It is a desktop-based program that can be downloaded onto your computer and used like any other application.
If you want to get more use out of this program, you might want to install the Metaquotes Reporter tool, which will provide you with additional financial reports, news stories, and links. You can also find a free program version in your favorite search engine.
This platform is top-rated among professional traders because it allows you to set up custom indicators and tools for your charting platform. The list of indicators and tools this platform provides is endless, but most other platforms do pretty much the same thing.
6- Closed source: TradeStation
TradeStation is a powerful software solution ideal for low-volume traders who need complete control over the way they trade online with access to all the tools they need to help make money.
For example, TradeStation has an option known as One Click Trading, which lets traders place trades without needing to go through any menus or write complex code to place an order.
Users can also build their trading strategies from scratch with up to 500 symbols. TradeStation is also an excellent option for users who want to use an automated trading platform like Forex Tester 2. You will have to pay for TradeStation, but the truth is that it's one of the best trading platforms you'll ever find, and it has 24/7 customer support staff standing by.
7- Cboe
The most popular forex trading platform which is very useful for many users is the Cboe exchange, which has been around since 1973. It is a U.S.-based exchange and is the largest in trade volume, which adds to its popularity among traders.
It is a very well-known platform for forex traders and provides many indicators with which you can improve your technical analysis-based trading. It offers many tools you can download as add-ons to your existing charting platform. It also makes it very useful for advanced traders interested in trying out new tools they have found or developed themselves.
Conclusion
The forex market is filled with software solutions, including proprietary options that trade through your account like a broker.
Each piece of software allows traders and newcomers to grasp better how the markets work and how to make money from them.
Which program did you find most useful?
Do you use any of the tools discussed in this article, or do you prefer something else entirely?
Let us know in the comments section below, and don't forget to share this article if you found it helpful!
