Being a day trader is one thing; being successful at it is quite another. With the markets shifting by the second, charting software is your best bet. You can research the trading day activity of specific equities, currencies, and commodities in this manner.
You’d have to rely totally on fundamental analysis without these powerful tools, and unless you have the skills to comb through hundreds of documents nearly every day, you’d struggle to create or even expand your revenue.
Artificial intelligence is used in most sophisticated charting software applications, which means they not only show you market movements but also provide you with additional benefits.
After reviewing a variety of charting platforms (Day Trading Platform), we’ve compiled a list of the best charting software for day traders which we will cover in this article.
What Is Stock Chart Software?
Stock chart software enables you to create a variety of various sorts of charts depending on the price movement of a stock. You can also include a variety of technical indicators, the quantity, and type of which are determined by the software’s quality. Many of them also come with filters.
A stock chart is a pricing chart that displays stock price action over a period of time, as well as other vital data.
A stock chart shows the price change of the stock over time, as well as the starting price (the value of the very first trade), the maximum value the stock traded during the period of time, the lowest price the stock exchanged during the time period, and last value at which the stock was traded.
As a result, you can learn out about the net effect.
How Stock Chart Helps?
When performing technical analysis on a chart, you’re looking at one with a trend line. The trend line illustrates that how a stock’s price changes over time. It is frequently depicted in blue.
Then there is support and opposition.
These are the levels over which it is improbable that stock would move. Resistance is the range’s apex. When a stock overcomes resistance, its price rises higher than predicted.
At the bottom, there is support. It is highly improbable that the stock’s price would drop below that line.
When the price of stock swings outside of its present support and resistance levels, new lines are generated. This is the process by which active traders make decisions.
For example, if you’re purchasing a stock, you’d want to enter at or right above the support level. If you’re selling, you’ll want to exit before the price reaches resistance, unless you’re anticipating a breakout.
When a stock breaks through resistance, it rises over that critical level, which is referred to as a breakout. If it drops below support, a collapse has occurred. This is frequently the time when the real profit is earned.
The key here is that technical analysis of charts conveys the tale of a stock. You can examine a chart that covers ten years or one that depicts a single minute of price movement.
Intraday charts are typically divided into much shorter time periods on day trading platforms. That is because you wish to purchase and sell securities prior to the market’s close.
How To Choose Stock Chart Software?
Consider your budget and personal preferences while selecting stock online trading software. Additionally, consider lifespan. Is the platform you chose going to grow with you as a trader and with your trading experience?
You don’t want to spend time learning how to utilize stock trading software just to have to change after you’ve outgrown it. Certain stock trading chart applications are missing the level of depth and detail you require to quickly and accurately execute trades.
Trading penny stocks, for example, entails taking huge stakes in risky equities. Fast charting, where you can extract patterns and observe previous price moves, can help you capitalize on chances.
Cleanliness – Best Charting Software
I’m irritated with sloppy trading charts. They’re excruciating to look at, and any patterns are nearly difficult to see. After only a few minutes, it gets my eyes fatigued. It’s difficult to tell how a stock is progressing when the charts are cluttered.
The user interface of a software program should also be kept clean. Are you able to quickly access the screens you require? Are there any details or hotkeys that you can use to make your task go faster? Is it easy to understand the fonts?
Usability – Best Charting Software
You should also think about how simple a program is to utilize. Is it possible to change the specifications of technical indicators in the software? Is it possible to select from a variety of stock types? What if you could keep an eye on many securities at the same time?
Every trader is unique. A stock trading chart software program’s features may be totally different from what you want. Prepare a list of the items you absolutely must have in the software, and a list of possible add-ons.
It’s similar to purchasing a home. You bring your list and cross off each item. You’re more inclined to buy if there are benefits.
Also Read – Best Trading Software
Best Charting Software For Day Trading
After researching a lot many charting software in the market, we have compiled the list of the best charting software that will be your best companion for 2021 and beyond.
The TC2000 is a creation of Worden Brothers Inc., a firm that has been operating in this industry since 1997. To simplify trading, the software removes the guesswork in order to enable novice and professional active traders alike to increase their winning transactions.
In other words, if you’re just starting up and have no idea what you should be performing, this platform is the perfect spot for you to kick start your professional career.
When you consider the TC2000’s low price, you wouldn’t think that it would come with so many useful functions. As an example, a two-second scan offers you a good notion of what stocks to look for.
This is especially nice, as it saves you time each time you run the software by remembering your previous charts and reorganizing them for you. It helps keep track of any notes you’ve made, as well as keeping track of your watch-list.
The TC2000 charts might be mistaken for any other trading activities platform’s displays. The charts are fairly solid, however, if you inspect more closely, you will see that the charts are actually quite sturdy. Clicking on the choice is all that’s required to keep tabs on the market’s moves in real-time data.
Additionally, with a single click of a mouse button, you can gain access to a limitless number of data points, including indicator values, highs and lows, entry and exit points, and more.
Scanz has been in business since 2002, but it was formerly known as EquityFeed. The re-branding took place in 2019, and it symbolizes the company’s expanding dedication to growth and reinvention.
In addition to the news that drives market movements, Scanz gives you access to a wealth of information. This is due to the fact that the app is linked to over 100 different news sources.
In the scanner’s settings, you can choose whether to receive news updates on “Mergers” or “Acquisitions” solely or on any other keywords or phrases that are important to you personally.
You get access to over 50 variables that you can utilize to narrow down your scanning findings. As an alternative, you can also utilize well-known filters, such as the latest price, the dollar change, percentage change, ask and bid prices, and OHLC values.
Scanz has gone above and beyond by offering you color coding, which makes it a breeze to maintain your finger on the pulse of the industry.
Breakout signals, as you may know, make it simple to land actionable alerts for a variety of equities. It generates a variety of breakout signals, including High Alert, Low Alert, Price, and Volume breakouts, among others.
If you like streaming charts, you’ll enjoy these charts, which contain all the projection and analysis tools you’ll need.
TrendSpider is one firm that has done a lot of work to produce gorgeous charts that also offer real-time market data.
In addition to having a simple chart layout, they provide a variety of advanced features that are designed to be quick and easy to use. Despite the fact that it contains some of the most innovative additional features available in the business, the charting program loads very quickly, and labeling it as a resource eater would be completely inaccurate.
Most significantly, they allow you to personalize your charts. You may change everything from the chart kinds to the colors to the analysis techniques.
Their automated charting program is particularly useful because it can generate various sets of time periods. You also have the option of using all of the accompanying technical indicators regardless of the price chart you choose.
The charts in TrendSpider are very easy to use and understand. As a result, regardless of your degree of trading strategies, you’ll find this to be a welcoming platform on which to thrive.
TrendSpider is an excellent bet if you’re searching for a platform that gives you access to a variety of data sets. This is a terrific platform for anyone wishing to explore a dynamic economy, with FX, OTC markets, futures, cryptos, ETFs, and equity indexes all available.
You can create separate watchlists for each market you’re monitoring. Not only do you gain the ability to create your watch lists, but you also gain the benefit of the TS software analyzing markets for you and scanning for significant patterns.
TradingView is a stock charting and technical analysis tool that is offered for free and for a fee. So far, it has only been around for a few months, having been co-founded by Stan Bokov, a group of traders, and software engineers in September 2011.
Traders can look at price charts for a variety of financial markets and asset types, such as stocks, currency pairings, commodities, cryptocurrencies, futures, and even bonds.
With its HTML5 charts that are renowned to load quickly, this collaborative market tops the markets. Their basic charting program is meant to conserve CPU resources, allowing you to accomplish more in less time.
The platform offers a wide range of charting options that are simple to use. Traders can quickly assess the technical characteristics of a chart, as well as search up the current market price. This feature, which includes a chart comparison feature as well as other indicators and charting prices, can be a vital tool for any trader, whether novice or experienced.
Users can resize the charts in real-time data, add indicators, modify the interval, and do whatever else they want.
In addition, all TradingView subscriptions contain more than 50 clever, easy-to-use chart creation tools. The excellent tools are intended to assist traders in keeping a careful eye on just how chart patterns develop and how price action behaves.
For the most part, their platform works wonderfully. So, unless you’re looking for a super-advanced system, it would be a nice platform to use, especially while you’re on the road.
Because this is an HTML5-based system, it is also exceedingly simple to use on a mobile device. The company’s app is available for iOS users only at this moment.
The best charting software for day trading is like an open-air market, everything is permitted, so everything must be examined. It is difficult to imagine a finer example of consumer sovereignty than this, which includes platforms that are completely free to use as well as others that demand a fee.
The fact is that there are numerous sites via which you can get some fantastic charts. Therefore, do not end up hurting yourself or confine yourself to a certain kind of trading style simply because you believe charting services are only for big traders.
Charting Software FAQ
A moving average tracks the average price of a stock, commodity, or index over a given period of time.
RSI considers the number of days up versus the number of days down on a chart as a part of calculating the relative strength index.
Bollinger Bands are a tool plotted on your standard stock chart, working in pairs to illustrate the range of prices that a stock could see.
A line in the middle of the stock chart the moving average think of this as a simplified representation of the stock’s movement.
If the bands separate, volatility increases, indicating that a price trend may soon come to an end.
In addition to a typically limited feature set, free charts may not provide up-to-date or complete data.