There are so many softwares are available for online trading. Among them technical analysis software is very useful and beneficial. The technical analysis is more widely used in the stock market.
Technical analysis software is used to charting, analysis and reporting functions of financial markets.
Technical analysis is a security analysis technique that uses charts to express models and trading rules. In a technical analysis, models such as a stock’s relative strength index, regressions, moving averages, cycles, price patterns and inter-market price correlations are studied.
Features of Technical Analysis Software:
1) Charting
A graphical interface that presents price, volume and technical analysis indicators through a variety of visual interfaces such as line, bar, candlestick and open-high-low-close charts. The chart data is presented as a time series and users typically have the ability to view historical data with varying interval (sampling) periods.
2) Scanner
Scanners enable users to 'scan' the market, be it stocks, options to identify investment opportunities that meet a user's specific investment criteria.
3) Alerts
Alert software is used to monitor specific equities, such as stocks, options and provide a notification of when specific price, volume and technical analysis investment conditions are met.
4) Indicators
Most technical analysis software includes indicators. Some software will also provide a customizable, combine or create new indicators.
5) Data feed
Technical analysis software is typically used with end of day (EOD), delayed or real time data feeds. EOD data feeds provide the end of day closing price for the given equity and update.
6) Optimization
Optimization is a process of testing technical analysis indicator parameters, with the view to developing an investment strategy that generates the maximum return based on historical price movement. The optimization process is achieved through the associated technical analysis charting parameters.
7) Back Testing
Back testing enables traders to test technical analysis investment timing strategies against historical price movement.
