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.
