May, 2012 5:01 AM
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Scanning software
Stock scanning software enables traders to scan the market using either fundamental or technical analysis techniques to find potential trading opportunities.
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Scanning software is an essential tool for technical traders. Basically, scanning software lets you scan all possible stocks in the market based on your favourite indicators – which might include Momentum, RSI, Ultimate, Stochastic, CCI’s, OBV and Price Oscillator. It’s then a matter of charting the stocks – possibly combining some fundamental research – and then deciding whether there are any trades worth leaping on.
Most scanning software lets you hone your technical analysts skills by back-testing your favourite indicators against historical market data to arrive at a past performance figure. In other words, had you followed your trading system to the law, you would’ve made 11 per cent a year, for instance. Of course, the past hardly guarantees the future, so always keep this back of mind.
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