Day trading today would not exist at all without electronic trading platforms and trading software. Most brokers therefore offer their clients the appropriate software when they open a trading account. The trading software is very important especially for beginners, so that they can develop a suitable strategy and base their decisions on it. But also professionals base their decisions on technical analysis.
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The technical chart analysis is in stock exchange trading, as well as in Forex, Bitcoin & CFD trading, a proven tool to predict price movements. In simple terms, technical analysis software is based on the interpretation of charts, i.e. the price movements that are displayed as graphs. However, it includes countless methods, techniques and also tools to make it easier to identify resistance and movement patterns. The best technical analysis software, not only for beginners, is certainly the MetaTrader, which can be downloaded for free from Admiral Markets. In stock exchange trading, whether it is forex or stocks, the MetaTrader is one of the most used and important tools. Beginners have the possibility to try out the different analysis tools on free demo accounts, of course without any risk. Through practice they will then learn how to deal with the different indicators and time frames so that trends can be captured and analyzed more easily.
What is it about the Indicators?
Indicators play an important role in technical analysis software, as they determine the volume in the stock market and also in the futures market, for example. For the respective trading platforms, the technical indicators are so-called add-ons. They evaluate statistics and also evaluate the correlations of different data so that price movements can be derived. In principle, they can be divided into four groups: trend indicators, volume, volatility, and the momentum group, which also includes the RSI, i.e. the Relative Strength Index. This is an indicator that sets the upward and of course also the downward movements over a certain period of time and compares the mean value of the two movements. If the RSI is at a value of 30 (or even less), then one assumes that prices have fallen much more than expected and that the market is oversold in this case. If the opposite is the case, then it is usually a Relative Strength Index of at least 70.
With MetaTrader you have a total of over 50 different indicators available, which can be adjusted according to your own wishes. This means that you can set the desired time frames manually, as well as change the colors, which of course makes the handling much easier for beginners in Forex trading. It is clear that neither the technical analysis nor the indicators can predict a hundred percent hit rate, but they are very useful tools that allow you to evaluate the market situations much more easily and, above all, faster. This is why newcomers to the stock market should focus on the best technical analysis trading software from the very beginning, regardless of whether they are trading stocks or prefer Forex.
What Features should Technical Analysis Software have?
When choosing the best technical analysis software, forex beginners must make sure that it is compatible with the trading software and of course that it provides good customer support. Complementary software is not yet advisable for beginners, as they must first understand the purpose of the software and work out a strategy. The software should help to improve the trading strategy for shares or Forex on the stock exchange and to automate processes. Autochartist, for example, is a technical analysis tool to detect patterns early on. This allows trends to be detected in time and the best entry opportunities to be identified. The Autochartist software is one of the best tools in Forex trading. There is no need to download it, as this application can be easily integrated into trading platforms such as MetaTrader through a plugin.
Another complementary tool for the best software in terms of technical analysis is MotiveWave. However, this powerful software, which requires download and installation, is not free. Only a 14-day trial version is available. MotiveWave is based on the complicated Elliott Wave procedure, which is very confusing even for experienced traders. This method usually requires years of experience and also an already trained eye, because beginners will certainly not be able to recognize clear processes and clear timing. As a beginner, you should rather rely on simple chart techniques and deal with wave analysis first, before investing money in software supplements that are not suitable for beginners in Forex or stock trading on the stock exchange at all.
The best technical analysis trading software for beginners provides information on price behavior, from which the appropriate trading recommendations can be derived. The analysis of price data is important for stocks, and of course also for Forex trading, as in this case the positions are not held for long compared to other financial products. Beginners should therefore definitely learn how the trading software for technical analysis works in order to achieve good results in trading.