Traders are fascinated by charts, numbers, and indicators, and most brokerdealers are happy to accommodate them. Downloading a demo account will give you a good idea of the toolset available. In a few instances the demo does not offer the entire palette so you need a mini-account to see and test drive everything. Not sure? Ask the broker.
Most platforms offer integrated charting and technical studies capability. For those platforms that do not, you need to access a third-party vendor. We recommend an integrated platform for the novice.
Unless you have a unique trading tool, the days of needing to access a broker’s platform for order entry and a separate platform for market analysis are coming to an end. Today’s platforms do all the integration for you.
Most of the popular indicators are available—moving averages, stochastics, relative strength, oscillators, Bollinger bands, and many others. (See Figure 7.1).
FIGURE 7.1 Technical Indicators Source: www.ninjatrader.com
Bar charts with a variety of settings for time frames and units are offered. The new MetaTrader-5 platform has 21 preset time frames and if that is not sufficient, you can custom configure more—as many as you like with NinjaTrader. Be sure the dealer has what you need; integrated charting capability is a must, especially for the new trader. Swing charts, candlesticks, and point and figure charts are also available.
Most platforms offer a palette by which you can customize the look and feel of charts. The size, scale, and coloring of charts can make a big difference to your interpretation of them. As an experiment, take a single pair with the same time scale and unit and make a half-dozen or so charts with different parameters. My advice to the beginner is to keep all charts in the same size and color scheme. Trading is an extremely delicate process, and even small differences matter.
It is best if you have some idea of what you want before beginning your due diligence. Some primary considerations: colors, sizing/scaling, time frames, vertical and horizontal scrolling, printing. As an old-time trader, the author still likes to print charts for analysis.
TIP: Do not let the plethora of indicators and charts overwhelm you. I recommend that you initially work with bar charts, moving averages, and an oscillator. Learn them one at a time. Once comfortable, pick an Indicator of the Week to add to your platform and study.
Most platforms offer integrated charting and technical studies capability. For those platforms that do not, you need to access a third-party vendor. We recommend an integrated platform for the novice.
Unless you have a unique trading tool, the days of needing to access a broker’s platform for order entry and a separate platform for market analysis are coming to an end. Today’s platforms do all the integration for you.
Most of the popular indicators are available—moving averages, stochastics, relative strength, oscillators, Bollinger bands, and many others. (See Figure 7.1).
FIGURE 7.1 Technical Indicators Source: www.ninjatrader.com
Bar charts with a variety of settings for time frames and units are offered. The new MetaTrader-5 platform has 21 preset time frames and if that is not sufficient, you can custom configure more—as many as you like with NinjaTrader. Be sure the dealer has what you need; integrated charting capability is a must, especially for the new trader. Swing charts, candlesticks, and point and figure charts are also available.
Most platforms offer a palette by which you can customize the look and feel of charts. The size, scale, and coloring of charts can make a big difference to your interpretation of them. As an experiment, take a single pair with the same time scale and unit and make a half-dozen or so charts with different parameters. My advice to the beginner is to keep all charts in the same size and color scheme. Trading is an extremely delicate process, and even small differences matter.
It is best if you have some idea of what you want before beginning your due diligence. Some primary considerations: colors, sizing/scaling, time frames, vertical and horizontal scrolling, printing. As an old-time trader, the author still likes to print charts for analysis.
TIP: Do not let the plethora of indicators and charts overwhelm you. I recommend that you initially work with bar charts, moving averages, and an oscillator. Learn them one at a time. Once comfortable, pick an Indicator of the Week to add to your platform and study.
