Best Forex Trading Technical Analysis Software
When you start to trade Forex, you will discover that success depends on making choices based upon certain rules. These rules are usually delivered by your trading strategy, as there is no successful trader that could achieve consistent profits by simply predicting the market moves on their own. When developing a trading strategy, many people rely on technical analysis.
If you imagine that Forex trading is a job, you can always count on doing your job better when the right set of tools is available to you. This is where Forex technical analysis software comes in handy. With great software you can eliminate the need for unnecessary calculations, the determination of vague patterns, and you can generally improve your trading strategy from a technical perspective.
What you have to remember is that such analysis can either be favourable or unfavourable for you, depending on the set of tools you are using. In this article, we will highlight the most important and the most widely used tools for technical analysis, and we will also explore how you can choose the best one.It is vital for you to understand the characteristics of Forex analysis software.
As the industry constantly evolves in terms of technology, it is much more important to be able to differentiate between useful and useless software, than to simply know a list of the best Forex technical analysis software available. Let's take a look at the best pieces of code available for Forex traders - and then see what it is that makes a piece of technical analysis software truly efficient.
Table of Contents
Trading Software | MetaTrader
One of the best tools for technical analysis is available right at your fingertips. If you are trading Forex online, you will probably already be familiar with MetaTrader 4 (MT4). Don't worry if you're not - as professional traders can sign up for a free demo trading account easily, and can test MT4 without putting their capital at risk.. You can access a superb set of technical analysis tools with MetaTrader 4, so before you look elsewhere for other tools, it's worth mastering this trading platform first. You might even find that you have everything you need here.
Timeframes
When it comes to trading, one of the most important items for analysis is the availability of timeframes. Whilst indicators are important, it is much more important to be able to get the entry and exit signals confirmed on more than one timeframe. With MetaTrader 4, you can access up to nine timeframes, so you can easily assess and analyse trends. This is a very useful feature for technical traders.
Indicators
This is of course a vital tool for many, if not all, Forex traders. With MetaTrader 4 you can access over 50 different indicators that can highlight trends, volumes, and many other important pieces of data for your technical analysis. In addition to this, you can fully customise the indicators, so you can, for example, change their colours and adjust the data (periods) used for calculations.
This what makes MT4 indicators superior to many other types of Forex trading technical analysis software. What is great for novice traders is that the platform is supplied with these indicators without requiring any further effort from the trader, so you can start with technical analysis right away. Advanced traders will find custom indicators handy too, as they make it much easier to customise their trading strategy, and perform more sophisticated technical analysis.
Graphical objects
This type of tool is also very useful for technical traders. Even though you are not able to define exit and entry points, with graphical objects you can define support and resistance levels and apply various shapes on your chart to improve your analysis.
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Forex Trading Software | Other Tools
Autochartist
This is a great tool for traders who are aiming to increase their understanding of patterns. The main advantage of this technical analysis tool is that it is available as a web application, meaning you can easily access it via your browser. This is quite handy, as no download or installation is required.
So how does Autochartist work? The main point of Autochartist is to recognise technical patterns automatically. Many traders have heard of the rising wedge, head and shoulders, flag, false flag, and many more. While it may take some time to understand these patterns, it can take even longer to develop the skills needed to recognise them. With Autochartist this is completed automatically.
The software scans the charts and informs you whenever a certain pattern is identified over a specific timeframe. This way you can easily learn about the patterns and their meanings, and eliminate unnecessary time spent trying to identify the patterns. This certainly makes Autochartist one of the best Forex trading technical analysis software types available.
MetaTrader 5 Supreme Edition
Having access to excellent technical analysis software is important, but being able to improve all areas of your trading is crucial in terms of increasing your potential for trading success.
Admirals' MetaTrader Supreme Edition plugin is the perfect tool for facilitating this, as it expands the trading experience through access to additional features such as the Correlation Matrix - which enables traders to compare and contrast currency pairs, or the 'Mini Terminal' - which makes trading outside of the platform possible!
If you haven't downloaded MetaTrader yet, click the link below and join countless traders on the world's most premiere multi asset platform!
MotiveWave
This tool is especially useful for traders that employ Elliott Wave Analysis in their trading strategy. With the help of MotiveWave, a trader can advance their knowledge and understanding of EW analysis, and rely on the complex data derived from the sophisticated algorithms. MotiveWave offers EW analysis and Harmonic Patterns, and also supplies a large amount of studies.
Unfortunately this piece of software comes with two disadvantages. First of all, it comes either as a Windows program or a Mac application. This is not a major issue for most traders, yet you would need to spend a little time downloading and setting it up. Secondly, as the software is quite powerful, it doesn't come for free.
Technical Analysis Software | Attributes
When it comes to selecting technical analysis software, there are a few things you need to bear in mind. The software can either add more clearance to your chart, or it can actually add so many items that every sign of clearance will be removed. This is why technical analysis software for Forex trading should be chosen with care. Let's take a look at the most important factors for choosing the right Forex trading technical analysis software.
Applicable to your strategy
Software is designed to either automate or improve your trading strategy as a whole, or just partially. This is why you should only look into such software once you have an established trading strategy. It makes little sense to get software which you do not understand, while hoping that it will just perform the analytical job for you.
Available for your trading platform
Your trading platform should be your ultimate tool for technical analysis, as it would be pretty hard to separate analysis from trading. This is why it is important to choose an advanced trading platform straight away. For this reason, it is advised to start using the MetaTrader platform. Although the trading platform is important, some tools could prove to be useful when used alongside it. It is best to pick up the tools that are available as MetaTrader plugins. In addition, the following MetaTrader platforms and plugins are available with Admirals:
- MetaTrader 4
- MetaTrader 5
- MetaTrader Supreme Edition plugin for MT4 and MT5
- MetaTrader WebTrader for MT4 and MT5
Web versions
If the software is not available as an MetaTrader plugin, you may still benefit from it, if it comes as a web application. It might be not as convenient, especially if you are trading on a single screen, yet if the tool is available without an installation - it is a strong advantage.
Single tool
While there are certain pieces of software that come as suites, it is best to pick up a tool that can efficiently complete one job. In other words, it is better to have one analysis completed in a good way, than have ten completed in a mediocre way. We hope that you have enjoyed this Forex technical analysis software article. Good luck with trading, and remember to use only verified tools for technical analysis that you understand.
Interested in practicing your trading skills under real and live market conditions? Register for a free demo account and hone your strategies before putting them to the test on the live markets! Click below to get started:
Other articles you may find interesting:
- Use MetaTrader Like a Pro With MT4 & MT5 Shortcuts
- The Moving Average Strategy Guide
- Overview of the Best MT5 Indicators
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