Free forex charting software.
Free forex charting software is a tool that can save you a lot of time and frustration. As a forex trader you know the pain and time wasted on manually entering price data, then doing all the mathematical computations, then sorting through that data to find trends and buying or selling points etc. manually. When you use a software tool, you don't have to do any of that. You just enter your data and let the software do the rest!
So you might be asking yourself, "What's so great about forex charts?". To begin with they are easy to read, you can see an image of the price movement and in many cases you can see indicators of possible future price movement. These price movements are generated based on previous price movements and volume. This makes it possible for forex charts to work with more than one data source. This makes it possible for the forex charts to predict future price movement based on past price movement.
Free forex charting software is available online so that any forex trader can access this information. You can use any of these tools for either regular time frames or higher time frames like range charts. You can see real time price movement in any time frame by using any of the forex charts.
Some forex charts also incorporate technical indicators. With these types of technical indicators the price movements are based on their slopes and wave shapes. Most technical indicators start out flat and then start to rise so you know that there is a high potential for price movements. Some of these technical indicators can include moving averages and other lagging indicators. You can use any or all of these kinds of technical indicators along with any of the free forex charts.
Dow Theory is a kind of technical analysis that has been around for about 10 years. Dow Theory states that if you look at the history of the stock market you will see trends where prices have risen over time. If you look at the history of the Dow the pattern looks like a rising triangle with a tail at the top. There are critics of the dow theory who say it is nothing more than a fancy way of selling watches.
Most technical analysis uses moving averages. The advantage with moving averages is that they allow you to see price movements over a longer period of time. They can also be used in conjunction with other kinds of technical indicators. When using moving averages you must be very precise with your choices. One thing that many forex traders do is use moving averages with other indicators. If you are not careful with these choices you could end up with invalid results.
The value of the stock is determined by how long it will take for the value to drop below a specific point. This is called the Support Level. Many people believe that if a stock has reached a high point then it cannot drop below that level. However, this is not true because the Dow is based on the Wall Street Journal closing price and it is possible that the Wall Street Journal could change. So this is where the beauty of technical analysis comes in.
Technical charting software can help you make better choices when analyzing the Dow Theory. If you find that a particular moving average or other indicator is misleading then you can easily remove it. You should try to get a free Forex charting software to practice with before you spend money on paid charting tools. This will help you understand how these indicators work and if they are making you money.