There are a number of options available for those looking to start using the automated trading software. It is important that you understand the pros and cons of using automated trading software because using the software comes with its share of risks. You do not get a lot of control when you trade using automated trading software.
Using the advanced tools in technical analysis
The basics of trading in the technical market are to use the charts and look at the trends in the market. The trader will start by looking at the trading range, and the support and the resistance levels. However, later the experienced traders also start to look at other technical analysis tools that increase the probabilities of the trade working out. These include indicators and oscillators that are highly beneficial. There are highly advanced technical analysis tools for those who have now got a good grasp of the basics of technical analysis. The common indicators used by the advanced traders are Fibonacci retracements. These are tools that let the trader find out the right time to get into an asset and the right time to get out of an asset. Hop over here to learn how to use the advanced tools.
Fibonacci Retracements are technical analysis tools that have been designed based on the calculations of the Italian mathematician. The tool has been used in the financial market for a long time. These tools are used to spot levels where the price may bounce fail in relation to the trend that is preceding it.
The price starts to find support at the various Fibonacci levels. The key retracement levels are 38.2%, 50%, and 61.8%. The price starts to bounce off those levels. The Fibonacci retracement tools can be used in the uptrend as well as the down trending market. Those who are short on the market could look for levels to short based on the same Fibonacci retracement levels. It is easy to plot these levels on the chart using the technical analysis tools.
One key area where the Fibonacci retracement levels can be used is when the market is at an all-time high or at an all-time low. When the market is at an all-time high then plotting the Fibonacci retracement levels can let you know the possible areas from where the price may start to bounce off. The same can be done when the price is at an all-time low. Plotting the Fibonacci retracement levels can let you know of the possible turning points.