Technical Analysis Services for Day Traders
Almost all day trading strategies rely on technical analysis, which is the process of identifying buy and sell opportunities based on the supply and demand for a security. Technical analysts look at charts of price and volume changes to identify changes in the trend.
Some technical analysis strategies are complicated and require sophisticated charting. That’s why many day traders use software that can turn price data into the information they need to make decisions.
Many users of these services get tripped up by the symbols and data displays. Take the time to learn as much as you can about how the services work before you trade in real time with real money; most of these providers offer seminars or online tutorials that can help. Yeah, many of the features are obvious, but you want to avoid costly mistakes.
MarketDelta’s software provides detailed charting services that match different strategies over several time periods, in colors that make the data stand out. The goal is to make price information more transparent and thus chart information more accurate. The company mostly deals with professionals, but some of its products are suitable for some day traders.
Metastock has several different charting and analytical packages, including one for foreign exchange trading, another for people who day trade in stocks, and a third for stock investors who are holding for longer than a single day. It even has some fundamental research tools.
Traders following specific strategies recommended by different market analysts can purchase add-ons that give them the tools needed to trade effectively and participate in in-person and online user groups.
A trading platform for active traders, NinjaTrader can be used instead of the trading software offered by many brokerage firms, including several of firms that deal with day traders. The service is best known for its charting capabilities in the foreign exchange and futures markets, but it can also handle market scanning, automated trade execution, backtesting, and simulation trading.
OmniTrader is designed to automate technical analysis, especially for stock traders. Traders can use it to set up automatic trading systems or to help them make their own decisions during the trading day. The system also includes money management tools, as well as simulated trading and backtesting to help you find new strategies.
RealTick combines price data with charting services and market signals for stocks, options, futures, and foreign exchange, making it useful for traders who are working in several markets. Its add-on services let you customize the data if you have an unusual strategy. The service includes direct access trading through several different brokerage firms, including a few that work with day traders.
Trade-Ideas is designed for stock traders. The software scans the incoming price data feed to find trading opportunities based on pre-specified indicators, and it can also show how much the market is deviating from a trader’s style. For traders watching hundreds or thousands of stocks, Trade-Ideas can be a useful addendum to a brokerage firm’s offerings.