In the previous chapters, we have learned many aspects of Technical Analysis. If you have read and understood all the chapters properly then you can definitely start trading based on technical analysis. This chapter will help you identify technical trading opportunities.
The tips I have given in this chapter are based on my experience in trading.
To start technical analysis, you will need chart visualization software, which is called ‘Charting Software’. Charting software helps you to view and analyze various stock charts. Charting software is very important for a technical analyst.
Well, there are many charting software available in the market. But two of the most popular are – ‘Metastock’ and ‘Amibroker’. Most technical analysts use one of these two charting software. You must purchase a license for this software before using it.
Well, there are some free charting tools available online that you can use. You can find them on Yahoo Finance, Google Finance, and many business media websites. But my advice is that if you want to become a technical analyst, then get good charting software.
You can consider charting software like a DVD player where you have to rent a DVD to watch movies. When you have a charting software, you need to take a data feed to view the chart.
There are many companies providing data feed in the market. You can find these on the internet. All you need to do is inform the data vendor which charting software you have, and he or she will provide you with the data in a form that is compatible with your charting software. Once you have purchased a subscription to Data, it will first give you all the historical data, after which you will have to update the data from its servers every day.
From my experience buying the latest version of good charting software can cost you between Rs 25,000 to Rs 30,000. Add Rs 15,000 to Rs 25,000 more for the data feed. Remember that the cost of software is one time, whereas there is an annual fee for the data feed. Note that you can get older versions of charting software for much less.
If you are not in the mood to spend that much on charting software and data, then another option for you is the software called tradingview.
As you know, tradingview has its own trading terminal which helps you in many ways; I would like to draw your attention to some of its features related to technical analysis:
- This is a double package – tradingview is a charting software and with this, you also get a free data feed, which means it is a double package.
- Nice Visualization – tradingview helps you visualize intraday charts as well as charts with many more time frames.
Modern Features – tradingview has advanced charting features. It already includes 80 technical indicators and over 30 drawing tools. - Strategy Scripting Possible – tradingview also has a scripting language in which you can code technical strategies and test them on historical data. We at here (our blog) will soon include a module on trading strategies and scripting.
- Ease of spot recognition – tradingview has a pattern recognition feature. You can bring up a pattern on the screen. Once the pattern is found, the tradingview will find that pattern in the market.
- Possible to trade with tradingview – tradingview lets you trade directly from charts (a great convenience for technical traders)
- Historical Data Dump – The tradingview has a huge historical data dump (over 50,000 candles), which means you will be able to test your strategy easily.
- Your Personal Trading Assistant – tradingview’s ‘Expert Advisors’, gives you live information about new patterns forming in the market.
- Super Advanced Features – tradingview has Artificial Intelligence and Genetic Algorithms. They help you with your trading
- It is free – tradingview is offering its features free of cost to all its members. however, a paid version is also available.
So you see that there is a very big list. Before you make a decision on whether to pick up a charting package and data feed, I would recommend trying out tradingview.com.
Gaurav Heera is a well known name in the field of stock market analysis and education. His distinguished career, which spans more than ten years, has cemented his reputation as an expert with unparalleled knowledge and innovative strategies for navigating the intricate landscape of the financial markets.
