Partner Article

Financial Data & Technical Analysis

Technical analysis is one of the major sources of information that even the most expert traders use. It can be as simple or as complex as you want to make it, because you can either manually input data into your chart software, or use an automated system. The question is whether there is actually any reason to manually analyse technical data at all.

Manual Technical Analysis

Many people still manually identify and track data on their trading platform. This is generally a slow method of gaining information and as you know, in the forex market, time is money.

Manual analysis involves finding your instrument, deciding on the chart lines you want, inputting them into the platform, and when watching the screen for some signals. This is very time consuming, and also narrows the quantity of data that you can observe. Flicking between screens and charts can be awkward, especially when you’ve got to look for patterns. Things are easy to miss when you manually observe chart fluctuations, but pattern recognition software flags anything of interest automatically.

If you need to change the way you’re tracking data manually, it takes even more time to alter parameters, so the system becomes relatively inflexible.

Autochartist: Automatic Pattern Identification

Autochartist trading tools automatically analyse a wealth of data, and present information to the user. They make the whole process of technical analysis far easier and far quicker. With software such as this, you are given more time to trade the market instead of just observing it.

Autochartist constantly updates and tracks data across multiple time frames. You don’t need to do anything until the information is presented to you. The programme is clever enough to inform you as to the quality of the signal and also supply detailed information on the pattern. Support and resistance levels are identified, which influence the patterns. There is also a great variety of pattern types which a trader can use in speculation.

Whipsaws and false breakouts can be trouble when looking at chart patterns, and there is no way of eliminating them. Fortunately the host of information supplied by Autochartist will help you to decide whether a trend is ‘genuine’ or not.

As long as the market is live, Autochartist will be on, which means you’ll never miss a trading opportunity. If you’re not watching a pair, then you can’t speculate on it, but Autochartist will update you every 15 minutes on whatever you want.

Adaptability is the final bonus of using software such as Autochartist. It is easy to personalise the system to give you as much or as little as you need, and for beginner users, allows the use of pre-defined time frames and instruments.

Using Autochartist makes an analyst’s role much easier. There is no real reason to use manual technical analysis; it’s just too slow to keep up with the speed of the forex market. The quicker and more efficient your trading strategy, the more potential for profit there is. After all, that’s what forex trading is all about. Why not maximise trading potential?

This was posted in Bdaily's Members' News section by Jack .