Before we proceed, lets take a close look at what we call as technical analysis. First and foremost, technical analysis does not eliminate the need for fundamental analysis. Fundamental analysis is a basic practice to know the companys reputation and stand in the market before investing. Technical analysis is the next level to fundamental analysis and takes a completely different approach. It doesnt care about the value of the company or commodity. It predicts the future of the shares through its current price movements in the market through charting. Charts are the basic elements of technical analysis. There are a variety of charts available, which will help a well-programmed web application to determine which direction a company will take in the future.
There are three types of charts Candlestick chart, Line chart and Bar chartthat represent the price data fluctuations caused by varying market forces. The information found in these charts enables a chartist skilled in the science of technical analysis to draw trading signals for future price activity.
Candlestick chart is the oldest form of chart, originally developed in Japan, in which every bar looks like a candle and comprises of the four primary points: high, low, open and close. The candlestick is often considered easier to view than the other chart forms. Line chart is an original form of chart and is used primarily for its convenience in plotting price data over extremely long and short periods of time. Bar charts are similar to candlesticks; however, one of its disadvantages is the inability to plot the whole price fluctuation.
Customized benefits for investors
Many web applications pose high ability to predict the market accurately. For example, Analyst 7, Metastock, Inchart, Bloomberg, etc. offer a great insight into the stock market. However, custom web application development takes investors one step further. What else are the benefits of custom web application development for a regular investor or trader? We shall take a look at the following:
Cost beyond affordability: Not all web applications are accurate and the applications that offer prediction through accurate charting charge exorbitant amount for a daily investor to buy and use. Customweb application development offers investor a privilege to add all the required elements at a price much cheaper than available applications.
Sure returns through custom filters on indicators: Custom web applications are effective as investors can get the indictors added as per their preferences. Investors can add as many indicators and get rid of the default range. They can avail a tailored application for tailored profits.