How to Find Charting Software for Technical Analysis - dummies

How to Find Charting Software for Technical Analysis

You can find charting software to help you with your technical analysis of securities. In fact, a lot of charting software is offered, so spend some time determining what you need from it. Here are the basics that you should require of your technical analysis software:

  • Have an easy interface with your source of raw data.

  • Have the ability to switch time frames along a wide range (from three minutes to monthly).

  • Show bars in regular OHLC format, candlestick format, and point-and-figure.

  • Allow you to draw an unlimited number of lines at any slope and contain at least ten standard parameter indicators, including moving averages, MACD, stochastic oscillator, Bollinger bands, and linear regression and linear regression channel.

  • Allow you to write your own formulas and modify the ones included in the charting package.

Survey what software is out there for free because after you buy a charting package and invest the time and energy to master it, changing horses is hard. Many traders are satisfied with their broker’s charting programs, which are becoming more advanced all the time. Using your broker’s charting software saves time and reduces errors by combining analysis with order entry.

Consider these packages when you look for charting software:

Futures magazine and Technical Analysis of Stocks and Commodities magazine both offer annual reviews of all the charting software, all the system vendors, all the brokers, and so on. Active Trader magazine offers articles on trading system design.