It's fair to say that Forex is an attractive market, especially for novice traders. You can go short and long, you can use a margin on your trading positions and there are lots of trading instruments available at your fingertips. Most trading is performed on a daily basis, which is also known as day trading and this is where the analysis for the trends and patterns becomes vital.
This article will provide you with an overview of some of the best Forex analysis software available and will highlight the options for traders of every level.
When looking for the best tool for analysis of the Forex market, you don't have to go far. MT4, an extremely popular trading platform among FX traders, provides the tools needed for good market analysis. While some will be unaware of this platform, the vast majority of traders know and have experience with MT4, and it's the trading platform you can use with Admiral Markets.
MetaTrader 4 comes preloaded with a lot of effective and useful tools for successful trading. Of course, the most important element of MT4 is the amount of available trend indicators, oscillators and indicators of volume. You may plot over 50 different indicators on your chart and there is nothing to stop you from using multiple charts at the same time.
Another vital part of this Forex analysis software is the amount of time frames available. These tools are used to in order to plot the chart over a specific amount of time, and usually time frames are used in combination with Japanese candlesticks, where a candle shows the price ranges over a specific time frame.
MetaTrader 4 lets you plot data over nine time frames, ranging from one minute to one month. This way, you can spot short, medium and long term patterns.
Another advantage of the MT4 analysis capabilities is the number of available graphical objects that you can plot on your chart. The platform allows traders to easily draw support and resistance levels as well as draw various shapes that could help in analysing the market.
MetaTrader certainly offers users a great amount of Forex analysis tools, yet are there are even more items available if you trade with Admiral Markets on MT4. Read below to find out what these items are.
Admiral Markets lets you experience MT4 trading in a whole new way by providing a large amount of extra tools via its MT4 Supreme Edition plugin. Once you have downloaded it and installed it over your existing MT4 software, you will gain access to these additional tools.
Some of these tools will help you execute your trades in a better way, like mini terminal which is a major update in regular one click trading supplied by MetaQuotes. There are also additional tools that can extend your analytical opportunities.
The main Forex market analysis tools available with MT4 Supreme Edition are Market Sentiment Trader and Correlation Matrix.
Market Sentiment Trader lets you observe long vs short positions on a certain trading instrument so you can preview the beliefs of traders and see if these positions are going to be against or in favour of your potential trades.
By using this tool for the analysis of the market, you can gain extra knowledge about the currency pair or other assets being overbought or oversold by the vast majority of the retail traders. Such an indicator is also known as Bulls and Bears.
The Correlation Matrix is one of the greatest Forex analysis tools, especially for novice traders as it demonstrates how changes in the price of one currency pair are expected to be reflected in the price change of another asset. This is not a simple indicator but a matrix as it also lists the changes over the available time frames. This is done as the correlation may differ drastically depending on the instruments and their time frames.
Such a tool is especially useful for novice traders as it will help in placing your margin to the assets with the desired level of correlation.
There are of course more useful features of MetaTrader 4 Supreme Edition, yet not every of them is related to the analysis of the market. Even though MT4 is extremely popular, and Admiral Markets makes it much more useful than it is with most other brokers, there are also additional tools you can use in order to better predict the behaviour of the market.
Unfortunately, MetaTrader 4 and its updated version MetaTrader 5 aren't currently available as web applications. Whilst you can trade from your desktop or your mobile application, you cannot trade without installing a program. If you are simply interested in the analysis and not in the trading itself you would still need to install MetaTrader 4 in order to benefit from the rich selection of the Forex analysis tools.
TradingView is a browser application with powerful charting, so you can generally experience a great set of analytical tools without having to install the whole app. However, you cannot trade from TradingView so it is best used as an analytical tool in conjunction with a trading platform such as MT4.
When you are trading on MT4 you are provided with real time data, yet it can be hard to find live data feeds in Forex analysis software which are free of charge. TradingView supplies one of the best priced feeds, which will ensure your charts are updated regularly. It is also possible to sign up for a premium membership so your data feed is as fast as possible on all trading instruments.
TradingView also allows you to access an enormous amount of indicators so you can perform much more detailed analysis. You can also select what type of charts to view, ranging from a regular line chart to Japanese candlesticks. Users can also benefit from handy tools such as Fibonacci retracement levels. TradingView can provide you with some good and powerful analytical tools, but as mentioned it is not a trading platform and it best used as an additional tool.
What makes this application one of the best Forex market analysis tools is its speed. You can easily apply indicators, customise your charts, and select new instruments quickly and efficiently.
As well as benefitting from improved analysis, you can also see thousands of traders performing their predictions with the help of TradingView Forex analysis software and learn from their strategies. This way you can start relying on crowdsource trading ideas instead of only focusing on the development of your own.
There are other alternatives to both MetaTrader 4 and TradingView available to traders, yet most of these tools are very specific and limited in terms of their scope, or simply inferior in terms of their quality. As a novice or regular trader you will be much better off using the tools described in this article.
When looking for new Forex analysis tools, it may be worth considering custom expert advisors that you are able t find on the internet or in the MetaTrader Store. It is advisable to actually look for custom indicators and useful tools of analysis, instead of trading robots. This way you will be able to learn and understand how to make the analysis better.
It is important to keep your trading simple, comfortable and have a necessary degree of clearance in your chart. There are plenty of Forex market analysis tools available to traders for free or for a charge, yet you should only focus on the tools that can be considered as a valuable addition to your trading strategy.
It is also important to have either the majority of your analytical tools or none of them at all placed in your trading platform. Usually if you have to balance between a few analytical tools and also perform an analysis on your trading platform, you may simply get lost in the overwhelming amount of the data.
This is why you shouldn't really use more than two tools for your FX analysis.
The perfect environment for testing trading decisions is with a risk-free demo account.