As any technical forex trader can tell you, the vast amount of data that can be used to try to determine the future price activity of a currency pair, precious metal, or CFD* (contract for difference) can be daunting. But the statistical significance historical price action can provide is crucial – which is precisely why tech traders use trend lines, chart patterns, and other technical indicators.

It’s also why we’re empowering traders with an automated technical analysis research application -- the first of many new trading apps to be integrated with fxTrade. We call this dynamic solution OANDA Technical Analysis, and it is the result of our development partnership with Autochartist. It’s free for all of OANDA’s fxTrade Live customers (note: its use is time-limited and analysis is delayed for fxTrade Practice users). Traders will undoubtedly find this utility useful when researching trading strategies with its ability to continuously scan and analyze the intraday market.

Launched last month, OANDA Technical Analysis scans more than 10,000 market data points per minute to identify price trends and chart patterns. By setting up customizable auto-alerts, it automatically notifies investors of emerging and completed Chart, Fibonacci, and Key Levels, and enables them to trade directly from the analysis screen by using our fxTradeNOW bookmarklet.**

There’s also an optional Expert Advisor (EA) plug-in for MetaTrader 4 available for traders who automate their trading strategies.

Keeping traders informed

Chart patterns can be a powerful tool for traders, especially when used in conjunction with other technical indicators, market news, and fundamental analysis to interpret statistical reports and economic signs.

OANDA Technical Analysis essentially automates the process of chart pattern recognition.

It also provides:

·         Price range forecasting to help you set stop-loss or take-profit levels based on volatility analysis from the previous six months;

·         The automatic identification of emerging and completed Fibonacci patterns from straightforward extensions and retracements;

·         Key horizontal support and resistance levels that indicate market sentiment on various tradable instruments;

·         Customizable daily market reports sent to your inbox providing a quick overview of the state of the markets before starting your trading day.

This short YouTube video provides a quick overview of how to navigate the OANDA Technical Analysis application.

More trusted partnerships to come

The Autochartist-powered solution is the first of many to come from OANDA’s new industry partnership program. We’re working closely with a select group of trusted partners to further enrich the fxTrade experience. Our goal over time is to broaden OANDA’s partner ecosystem through strategic partnerships with more software companies that share our values of fairness, transparency, and innovation.

Have you tried using OANDA Technical Analysis when conducting your forex research? What other tools would you like to see integrated with fxTrade? Please share your thoughts in the comments box below.

*Trading CFDs including equity indices, commodities, and Treasury bonds are not available for OANDA Corporation.

**fxTradeNOW is not available for clients of OANDA Asia Pacific Pte. Ltd.