DEFINITION of 'Forex Forecasting Software'
An analytical tool used to help currency traders with forex trading analysis through charts and indicators. Forex forecasting software provides charts of currency pairs that display price changes over time as well as indicator overlays including moving averages, which aid analysts and traders in determining appropriate and profitable entry and exit points for their forex trades. As with charting software used for trading other securities, forex charting software is used primarily by technical analysts to forecast future price movements.
BREAKING DOWN 'Forex Forecasting Software'
There is a wide range of forex charting software used for currency forecasting, which varies in appearance and functionality. Users should look for several things in forex charting software, including:
- Is it free, or if there is a nominal charge? What additional features are made available?
- What technical indicators are available?
- Is the software Windows, Macintosh (Mac) or internet (Java or HTML) based?
- Can you trade from the charts?
- Is historical data made available through the software?
- Is the graphical user interface (GUI) pleasing to look at?
- Is the GUI conducive to monitoring a lot of information at once?
Most forex brokers allow you to open a demo account prior to funding a full account or mini account. This allows users to try out each broker's software during a trial period and determine which software best suits their needs.