How to Choose Forex Charting Software
Forex charting software is one of the essential tools of the currency trader. This software allows him to identify chart patterns so that he can detect trading opportunities. It is available as a plug-in to be added to trading platforms such as MetaTrader 4, as well as web-based versions that don’t require the program to be installed. Although there are many free charting programs available on the web, many of the best ones are offered on a subscription basis, with the user paying a recurring fee for their use.
If you are interested in availing of a paid charting program, here are some of the things to consider:
What indicators are available? Technical indicators are the tools that you use to identify price trends that could signal trading opportunities. Which ones are available with the charting software?
What features are available? Free charting software offers basic features such as the ability to create various types of charts as well as identify basic chart patterns and apply technical indicators. However, paid software can come with additional features such as the ability to customize your own technical indicators and the scanning functionality that easily identifies trading opportunities. Look at the features that the software comes with to see if they can enhance your trading activities.
Does the program have access to historical data? This is important since you are looking for recurring patterns in the past that could recur in the present. Thus, you should avoid charting software that does not provide you with access to past price data.
What does the graphical user interface look like? The display should be easy to read at a glance, since you may need to identify trading opportunities quickly. The charts should be readily viewable, with the lines in sharp contrast to the background. While this may not be a deciding feature for you when you are making your decision, it is something that you should keep in mind.
Can you customize the charts? As you grow in skill as a trader, you’ll undoubtedly develop your own preferences as to what your charts should look like. The best charting software will allow you to incorporate your own preferences into the charts so that they are easy for you to analyze and identify trading opportunities with.
What are they charging? While price should not be the deciding factor in picking your charting software, you should consider if it is worth the features you are getting.
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