Charting is basically the use of graphs and charts in technical analysis, which is an indispensable tool relied on by those in the financial markets industry especially traders. The charts reflect important stock market progressions such as price movements, trading volume, interest, and others. This information helps traders in making decisions on the necessary actions to take in order to improve their chances of making a profit from trading stocks. Stock charting software was developed to facilitate better technical analysis so that users can easily have information available. It also allows them a faster reaction time suitable to the fast paced environment of stock market trading.
Stock trading software is usually offered in packages by their respective vendors. The features contained in the charting software a user has depends on the type of package purchased. Most charting software has the basic indicators needed for adequate technical analysis. On the other hand, getting a package on the higher end which has a programming language installed will allow a user to create other indicators, test various trading scenarios and strategies, and receive more data feeds among other additional features. .
Traders can choose to have a desktop-based STOCK CHARTING SOFTWARE or an internet-based one. Most traders prefer to have the internet-based version. A desktop-based version needs to be updated and maintained manually, while one based on the internet has the benefit of automatic updates. Date security is also better if the charting software is internet-based as the system is stored in a secure server with data encryption.
