What Charting Software Do You Recommend For Day Trading Price Action
Another question we hear often is what charting software do you recommend for day trading price action. When trading price action, we don’t use indicators, so the only real requirement is that your software charts properly and is reliable when it comes to printing the price action. We prefer trading tick charts for the reasons we talk about in this article, and we also like to trade with candlesticks for the reasons we discuss here. One other thing that we prefer is to be able to trade directly from our trading charts, as this makes it very easy to concentrate on the price action alone as we enter, exit and manage our trades. Based on the criteria we just discussed, we choose to trade with NinjaTrader software.
We are not affiliated with NinjaTrader in any way and we don’t receive any incentives for recommending them either. We simply recommend them because we use them and we like their software. Another reason for using NinjaTrader is that it is becoming widely used by many traders and brokers alike, so if you are using NT and you decide to change brokers, you won’t have to learn a new software all over again. You can simply change brokers and continue to use the same trading platform without the need to learn and adjust to something new again. This is a big plus in our opinion. The fact that NT is used by so many traders also means you can get a lot of help with it and there are lot’s of free add on scripts and indicators floating around if you should choose to use them.
Here are some additional discussions we found on NinjaTrader software options at www.investopedia.com.
The NinjaTrader platform offers a number of advanced features that can benefit traders of all levels and styles.
Advanced Trade Management – ATM Technology
NinjaTrader provides the option to trade with or without an Advanced Trade Management (ATM) Strategy, shown in Figure 17. ATM Strategies are designed to provide discretionary traders access to semi-automated features to manage positions. Note: NinjaScript Strategies are required for fully automated trading systems.
An ATM Strategy is a collection of orders that represent a trader’s entries, exits, stops and targets. ATM Strategies offer traders several advantages, including:· Fewer order entry mistakes (pilot error)· Better speed (the computer sends the order instead of the trader)
· Increased discipline (easier to stick to a plan)
· Higher consistency
· Reduced emotions
Advanced Charting with Multi-Series Charting
NinjaTrader offers the ability to view multiple charting intervals and multiple instruments within a single charting window, as shown in Figure 18. To add more than one charting interval or instrument to one chart, click “File” > “New” > “Chart” and add the desired symbols to the lower left data series window. Highlight any instrument to adjust variables, including Period (chart interval). Click “OK” and all of the symbols will appear on one chart. Different trading indicators can be applies to each symbol. (For more, see Using Trading Indicators Effectively.) You can read the entire original article here.
A great advantage to using the automated strategies is the fact that your target and stop orders can be placed instantly by the software as soon as your entry order is executed. While this simplifies your order entry process and automates the entries for you, it also provides another great benefit. With the electronic markets of today, your orders are processed on a first in, first out order. This means that there is an orderly and fair fashion in which all orders are processed. It’s like getting in line, and the closer you are to the front of the line, the quicker your orders are processed.
This first in first out process may seem trivial to some day traders, but if you are using limit orders for your profit orders, then it can play an important part in your trading success. You see, you will normally need for prices to tick through and beyond a limit order for it to be executed. However, if you create your orders quickly and get them in before the crowd, you can often get your order filled on a limit order prior to prices having to tick through the order, and this can often mean the difference between quick success and failure, particularly if you are a day trader trying to scalp or take quick profits.
When you look at all of the positives we just mentioned, NinjaTrader comes out on top in our opinion. Yes, there are other trading software options that will do the same thing, but are they as widely used by both traders and brokers? If not, and you ever need help or decide to switch brokers, then you will be severely limited. If you are looking for special indicators, there will be many less options as well, so keep these facts in mind when you choose your own trading software.