Forex trading was never easy..it required a lot of professional acumen. Even today, it is not an easy road to travel but many technical tools have made the task easier. One such tool every trader should have is FX charting software for technical analysis. They use the candlestick patterns, they spread the fib grids for Fibonacci retracement graphs, they use the Bollinger bands and they also use the trend lines. They provide all these indicators on the screen and ask the trader to analyze the situation. The trader makes the analysis according to his perspective.
Charting software can build on the extensive enquiry used by all these tools and this is why they are favored by investors, traders and daily money spinners. Each trader likes to trade differently. Unless they go for automated programs or forex robots, they are more close to a certain tool than others. Let’s take a couple of examples.
One trader might wish to understand closely when a market is expected to reverse and when the market may retrace a bit before pulling back. For this, there is no better instrument than a Fibonacci graph. In another instance, a trader may like to know when a lower band is wiped off due to volatility and prices reach the mid-band. This might make him a fan of Bollinger bands. The idea is that each trader tries to read the market through different perspective and likes to employ different tools. This is why charting software come in a customized fashion today. Remember that when you look to choose the best software, look for one that is customized.
Top charting software also reads a lot of past data for you. It finds out those pairs for you which are close to their all time high and are trading at volumes larger than the average volume. This is the knowledge that is required by every trader. Such knowledge makes it easier to calculate any immediate reverses in the future. It uses speed lines, semi log scaling to identify the buy/sell points but does not recommend a trade to you. Those charting software which advises trades are known as a black box program. Ask an experienced man about the pips and he would tell you how he has got his hair gray trying those out.
Two kinds of charting software figure among the best trading software. End of day charting software tracks against sound historical data and find out trading programs. Meta Stock, Neoticker and Trade Station are ranked right among the very best end-of-day charting software.
Real time technical charting software provides loads of data feeds and tells you exactly the point at which a forex pair is trading. Such feed reads a pair in the light of previous positions and brings out the best point of resistance. Bloomberg and Reuters are considered great for the purpose.