As a trader, you can use technical analysis software to predict the market movement by utilizing its charting, analysis, and reporting features. If you have tried forex trading for a while and learn to do it in the hard way, I think you have experienced the confusing moment of analyzing charts, prices and volume data just to decide a good entry price.

Utilizing a technical analysis software can greatly help you to make the very best entry and exit decisions. The features of this software can vary from the one which merely help you in certain area to the one that will automate all the process for you. These are some features of a technical analysis software:

1. Charting

Charting is the bread and butter of technical analysis. Generally, no technical analysis can be done without charting. The chart form is a graphical interface that reveals price, volume, and technical analysis indicator such as Elliot Wave, Fibonacci, Gann Fan, etc. There are time frame selection available so you can pick the one that match your strategies.

When selecting a time frame, you can pick from tick (seconds), minutes, daily, weekly, to monthly. Viewing historical data on a specific period of time is also possible; you just input the date range that you want.

2. Back Testing

Back testing is employed when you are testing various trading strategies or systems. In order to do this, you convert your strategies into a set of rules and test it against a time frame of the historical data and see the results.

While this method is good to a certain degree, rely on it too much have caused the fall of many traders. This is because they tested their strategies with historical data and keep modified it so it can be a profitable strategy during that time frame. These traders usually forget to test the strategy against current market movement. This is not a wise decision; a strategy that works well in 2001 but fail at the current condition is as good as trash.

If you have tested your strategy against historical data and it score good winning trades, create a demo account and test it again in the current market condition; If it still works and building steady profits in at least two months, you already have a strategy that works.

3. Alerts

Alert software is used to notify the trader if certain conditions are met in the market. For instance: the prices has gone through support or resistance line. This notification will be deliver to the trader via screen pop up, email, short messages, instant messenger, or any other communication means.

4. Custom Indicators

In a good technical analysis software, you can use, customize, or combine various standard indicators such as MVA (Simple Moving Average), EMA (Exponential Weighted Moving Average), LWMA (Linear Weighted Moving Average), etc. You can even create a new indicator that meets your need.

5. Broker Interface

There is technical analysis software that can be integrated to a brokerage platform so you can still trading with a familiar user interface. This will also make it easy to trade since you can just make an entry from the chart.

Using technical analysis software can greatly help you to analyze the market, make entry and exit decisions, and predict future market movement. If you enjoy analyzing market and do not want to rely on someone else for that, this software is a must have.