Traders who do not want to rely exclusively on market analysis and new trading need software with which they can analyze price trends. The corresponding trading decisions are then made on the basis of these results.
Both free tools and software available for a fee
Table of contents
- Chart analysis: The possibilities and limits
- Trading platforms with integrated software
- Free chart analysis software: How useful is it?
- Buy chart analysis software: When does it make sense?
- Sometimes less is more
- The best chart analysis software for automated trading
- Test chart analysis software with the demo account
- Conclusion: THE best chart analysis software there is nothing
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Chart analysis: The possibilities and limits
Traders who do not want to rely solely on market analysis or want to do new trading must use the technical Analyze the trading prices. For this purpose, numerous manufacturers offer software, which is available free of charge, can be bought or can be used for a period for a fixed period .
With the large selection of offers, it is difficult to keep an overview. Which functions are useful and which may not even be needed.
First of all, it is important for traders to be aware of what they are doing with the chart analysis want. The users of the technical analysis are of the opinion that all relevant information on future trading prices is already contained in the chart. With the help of various drawing tools and indicators, forecasts can be made about the future course of trading prices. However, this is never an exact forecast of the price trend, because due to the numerous factors that influence the charts, even the best analysts are unable to do so. The chart analysis therefore only provides an outlook on the most likely further course of the trading price. Therefore, even with extensive analysis, users should never rely on the fact that the predicted event will also happen with certainty. Professional traders must also calculate losses. The goal of chart analysis is therefore not to close every trade with a profit. Rather, the analysis serves to make decisions with a positive expected value and to ensure with an appropriate risk management that with a sufficiently high number of trades executed, the Total profits are higher than losses.
Trading platforms with integrated software
For many brokers, customers trade through their own trading platform, which is equipped with more or less numerous analysis functions. Other brokers allow their traders to trade on the platform of an external provider. A well-known example of this is the MetaTrader 4, which is the most widely used trading software worldwide and has numerous analysis functions and tools to offer. Here extensive course analyzes can be carried out. In addition, tools from other providers can be integrated into the software so that users can use additional functions. Which tools are useful here in individual cases depends on the level of knowledge of the respective trader and his trading strategy.
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Best Trading Chart Software
Free chart analysis software: How useful is it?
There are various free tools on the Internet, which offer users additional analysis functions and other advantages. For example, users can be informed about promising trading opportunities through trade alarms.
Often the free programs already offer such a large selection of functions that they even do not all can be used. Which software makes sense in individual cases depends heavily on the preferences, the skills and the planned trades of the user.
Buy chart analysis software: When does it make sense?
Not every chart analysis software is available free of charge. With many tools and programs, traders have to pay a fee in order to use it permanently or for a defined period.
Many too Brokers offer extensions for their platforms or access to exclusive platforms for a fee or a mostly relatively high deposit. Often there are actually helpful additional functions included, but traders should not be tempted to deposit more money than originally planned, otherwise they will leave their individual comfort zone when trading, which often leads to worse decisions. If, on the other hand, the software can be used in addition to the regular offers due to a planned deposit, it is often worthwhile to take a closer look and use it.
Sometimes less is more
Many manufacturers advertise that they offer the best chart analysis software because it has a particularly large number of functions. Here, traders should first think about which of these functions they actually need before hastily acquiring software that the trader doesn't even need. Under certain circumstances, the expected value of a trader can even be reduced due to too complex software.
Especially traders who do not yet have a lot of trading experience are well advised to do so to first deal extensively with the basic functions, which are already integrated in the trading platforms of most brokers. Ultimately, it is important to know what the results of the analysis say and how they can be implemented with a positive expected value. The analysis of the charts is done by the software, but interpretation of the results is the responsibility of the user. It is therefore not sensible to use too many functions which cannot then be interpreted appropriately. Good trading is already possible with the basic functions, provided the analysis results can be placed in an appropriate context and applied.
The best chart analysis software is of little use if there are weaknesses in other factors. For example, all traders should also deal with trade psychology in order to recognize and avoid emotional decisions as such. Risk management is also an important topic when trading speculative financial products. As even with detailed analysis losses in trading can occur, there should be a sufficiently high trading balance compared to the volume traded per trade, with which the variance can be cushioned.
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The best chart analysis software for automated trading
Automated trading is no longer only used by professional traders, but also from many private small investors. It is technically no longer a problem to have hundreds of trading prices scan for predetermined patterns in the course of the course and, if the relevant conditions are met, have automatically place trades. Even with automated trading is not possible without a good knowledge of the basics. If you could just let a so-called bot trade and it would make continuous profit, more traders would trade accordingly. In automated trading, it is important to recognize the trading prices to which the system with positive expected value can be applied and when it does not make sense. Promotional offers in which it is promised that customers only have to purchase the bot for a fee and then it makes profits for them every day can therefore be safely ignored.
Chart analysis software with the demo account test
With many brokers, customers can not only open a trading account, but also get a demo account free of charge, which they can use with virtual credit without financial risk can act. This enables users to familiarize themselves in detail with the functions of the software without having to use their own capital.
Even with paid software there is often the possibility to test them for a limited period of time. Customers should make use of this, as this avoids the unnecessary purchase of software that is not suitable for the trader.
Conclusion: THE best chart analysis software, there is nothing
out of the big one Selection of available chart analysis software makes no clear winner. While some additional information may be useful for professional traders with complex trading strategies, they may confuse and even prevent a newcomer from making progress. Many experienced traders consciously do without certain functions in order to instead be able to deal more intensively with the basic functions before each trade.
Searching for the best chart analysis software, customers should always consider which functions help them to trade and which could distract from the essential and thereby harm them.
If you want to use additional tools in addition to the functions offered by the broker's platform, you should try out several additional free programs with the help of a demo account. With realistic trading you can use virtual credit to determine which functions you need and, if necessary, to buy the appropriate additional software.