It is true that Foreign exchange attracts a lot of investors, especially rookie traders. In Forex, there is a great variety of trading instruments accessible to market participants, as well as many trading techniques to use – like going short and long, or applying a margin on a trading position. The majority of trading activities take place daily, so they are called day trading. For day trading, analysis of patterns and trends is extremely important. This article offers a review of some of the best Forex analysis software that can be used by traders of all levels to enhance their possibilities in the market.
There is no need for a long search of the best tools for analysing the Forex market. Tools that can assist with conducting good market analysis are provided by MT4, a very popular trading platform among Forex traders. Although there are traders out there who haven't tried it yet, most of investors have already experienced MT4. You can also use this trading platform with Admiral Markets.
MetaTrader 4 is packed with numerous efficient and practical tools for profitable trading. Certainly, the most important element of MT4 is the number of accessible trend indicators, volume indicators, and oscillators. More than 50 various indicators can be included into your chart with MT4; moreover, you are also able to use multiple charts simultaneously.
Another essential part of this Forex analysis software is the number of time frames that a trader can apply. Usually, charts are plotted over a certain time period. Time frames are generally applied to the chart in combination with Japanese candlesticks, which show price ranges over specific time periods. MetaTrader 4 allows its users to plot the data over nine time frames from one minute to one month. With them, you can reveal short, medium and long term patterns.
One more convenience of analysis capacities of this trading platform is the amount of graphical objects that can be added to a chart. MT4 grants its users possibility to effortlessly draw support and resistance levels, as well as other different shapes that assist traders with market analysis.
So, with MetaTrader investors can enjoy a great variety of Forex analysis tools; however, the possibilities of MT4 are even bigger if you trade on it with Admiral Markets. Keep reading to learn what these benefits include.
Admiral Markets provides investors with a whole new experience of trading MT4 by offering a lot of additional tools with its special plugin called MT4 Supreme Edition. In order to be able to use these extra tools with your existing MT4 software, you need to download the plugin and install it over your MT4 platform. Some of these additions are designed for better trades' execution. For instance, the traditional one click trading offered by MetaQuotes has been updated with a mini terminal. Also, there are supplementary tools created for further enhancement of the trader's analytical possibilities.
Major Forex market analysis tools accessible with the MT4 Supreme Edition include Market Sentiment Trader and Correlation Matrix.
Market Sentiment Trader is a tool that allows investors watching long vs. short positions for a certain trading instrument. With it, you can preview what other traders think of it and understand how these positions relate to your possible trades, whether they are against or in favour of them. When used for market analysis, this tool also helps learning more about a currency pair or other assets that are oversold or overbought by many other retail traders. This indicator is also called Bulls and Bears.
Beginner traders are those who benefit the most from the Correlation Matrix, one of the greatest Forex analysis tools. This instrument shows how price changes for one currency pair will possibly affect another asset's price change. The tool is presented not as a simple indicator, but in form of a matrix that also includes data about changes that occurred over accessible time frames. This is important because the correlation changes significantly depending on instruments and their time frames. This tool is extremely helpful for beginner traders – it assists them with placing their margin to assets with desired correlation level.
MetaTrader 4 Supreme Edition has other effective features, but not all of them are related to the market analysis. Please note that despite extreme popularity of MT4 trading platform and the fact that its usefulness is even more enhanced with Admiral Markets than with the majority of other brokers, there exist other tools that can be implemented for better forecasting of the market's future behaviour.
Unfortunately, MetaTrader 4 and its updated version MetaTrader 5 currently cannot be used as web application. You can easily conduct trading operations from your mobile app or desktop, but you will not be able to do that without installing a program. Even if you do not require the trading itself, but only are interested in market analysis, it is still necessary to install MetaTrader 4 in order to be able to enjoy the rich variety of its Forex analysis tools. We may also suggest TradingView for this purpose. TradingView is a browser app that boasts great charting and offers an indispensable set of analytical tools that can be used without installing the application itself. While being a great tool for analysis, Trading View cannot be used as a trading platform, so you might find it helpful when used in conjunction with something like MetaTrader 4.
MT4 trading platform provides it users with live data feeds, which rarely happens with Forex analysis software free of charge. TradingView is one of the best feeds that come at a price, as it guarantees constant charts update. They also offer a premium membership which provides it subscribers with the fastest possible data updates on all trading instruments.
TradingView offers access to a huge amount of indicators, all of which can be used to conduct a more in-depth analysis of the market. With this application you can choose charts that you would like to view – anything from regular line charts to Japanese candlesticks. Other helpful tools like Fibonacci retracement levels are accessible with TradingView. The application really does offer a lot of beneficial and powerful analytical tools, but let us reiterate that it cannot be used as a trading platform, but as an analytical tool only.
Speed of operations is what puts this app at the top of the best Forex market analysis tools. It allows users efficiently and quickly choose new instruments, customise your charts, and apply desired indicators.
In addition to better analysis, TradingView Forex analysis software also provides you with access to thousands of traders who conduct their forecasts with this app. You can learn from their strategies and include these crowdsourced trading concepts into your own ideas.
Of course, MetaTrader 4 and TradingView are not the only options available for investors; there are other alternatives that can be helpful. However, most of those tools are either quite narrow in terms of their possibilities, or simply of poorer quality. Regardless of your lever of trading expertise, we suggest that you implement the tools outlined in this article.
If you are still in search for new Forex analysis tools, you could also turn to custom expert advisors available in the MetaTrader Store or on the internet. Make sure you actually obtain custom indicators and handy analytical tools rather than trading robots. With them, you will master your understanding of how to improve your analysis.
Your trading process should always remain plain and comfortable for you, and your charts clear and understandable. There are many Forex market analysis tools that can be obtained for free or at a price; choose the one that will become a valued bonus to your trading strategy. Another important thing is to decide whether you want most of your analytical tools or none of them at your trading platform. If you have to combine a few analytical tools with your own analysis on your trading platform, you might as well get overwhelmed by the large volume of data. So it is not recommended to apply more than two tools for conducting Forex analysis.
Hopefully, this article has been helpful for you. We wish you luck in trading.