Flash Charting Software – advanced technical analysis tools for Forex trading

Devexperts Flash-charting software is a powerful Forex charting module that allows for accurate technical analysis and displays live exchange rates in a chart form. The charting includes a full set of effective technical analysis tools, such as horizontal lines, trend lines, Fibonacci retracements, and different indicators, as the application interface enables users to easily navigate, scale, and manipulate with the tools. Users can select currency pairs, charting types, analysis tools, and trading periods directly within their favorite browsers providing that the Flash Player software is installed.

Devexperts Flash-charting software is intensively used in the international market as an important part of DealBook® 360 trading platform developed for Global Forex Trading (USA), as well as in Russian companies, such as Derivative Expert news agency specializing in Russian derivatives market. In 2007 Devexperts presented the Flash-charting software application at the “Russian Flash Awards” contest, and it was acknowledged as the best work utilizing the most advanced flash features in the "Technical achievements" nomination.

Devexperts’ Flash-charting software is an out-of-the-box financial solution and can be easily placed on your website as a free or paid service providing customers with live analytical information.

Instruments

Horizontal lines: Horizontal lines enable to analyze price movements of currencies in real-time. Flexible system architecture of Flash-charting software allows users to easily create, move along the chart, and delete the lines.
Trend line: Trend line is a bounding line for the price movement of a currency pair that lets users investigate market trends for a specified period of time: a minute, day, week, month, etc. The Flash- charting software enables users to build, move, and delete uptrend and downtrend lines.
Fibonacci retracement: Fibonacci retracement is an important technical analysis charting tool based on the key numbers defined by Leonardo Fibonacci. The instrument is used to determine the critical points followed by price reversals on a chart.
Cross-tool: Cross-tool allows viewing information on quotes in the selected point of the chart area. The tool displays the quote value (open, close, high, low) in a certain moment of time and date.

Price Alarms

Price alarm is a new service implemented into the Flash-charting application to provide traders with the most flexible control over their trading practices. Price alarms enable users to determine the low and the upper price limits of an instrument. Price limits are marked with the red alarm line on a chart. In case the price of an instrument reaches the alarm line, a warning signal is heard and a notification is sent on the user’s e-mail or by Short Message Service (SMS).

Indicators

The main technical analysis charting tools are indicators used as an additional measure of the price movements. Flash-charting software supports more than 10 indicators that are calculated by users according to specified formulas. The indicators are displayed either on the main price chart or on additional charts that are synchronized with the main one.

Moving averages ( SMA, EMA, MMA): A moving average indicator determines the average price of a currency over a certain period of time. The Flash-charting supports 3 moving averages: Simple Moving Average (SMA), Exponential Moving Average (EMA), Modified Moving Average (MMA). By applying a moving average indicator, the price movement is smoothed out so that the day-to-day fluctuations are removed, and traders are better able to view and analyze the market trends for the required period of time.

Simple Moving Average (SMA) is the most traditional indicator used to calculate the moving average of prices. It simply takes the sum of all of the past closing prices over the time period (for example, 12 hours) and divides the result by the number of prices used in the calculation.

Exponential Moving Average (EMA) is more responsive to new information delivered from the market compared to the simple moving average. This factor determines the traders’ frequent choice of the exponential moving average indicator.

Modified Moving Average (MMA) is an algebraic tool which makes averages more sensitive to price shifts. This indicator resembles the simple moving average. The first point of the modified moving average is calculated precisely as the first point of the simple moving average is calculated. All following points are measured by adding the new price and afterwards subtracting from the resulting sum the last average. MMA is the difference, the new point on the scheme.
This method is convenient because it is not necessary to keep track of all past components of the average. Only the last moving average value and the new price are necessary for the calculation. The simplicity of this calculation makes the modified moving average to be extensively used by traders for internal calculations in other analyses.
Moving average convergence-divergence (MACD): Moving average convergence-divergence (MACD) is a trend-following momentum indicator that shows the relationship between a fast and slow exponential moving averages (EMA) of closing prices. The MACD is calculated by subtracting the 26-day exponential moving average (EMA) from the 12-day EMA. A nine-day EMA of the MACD, called the "signal line", is then plotted on top of the MACD, functioning as a trigger for buy and sell signals.
Triple Exponential Moving Average (TEMA): Triple Exponential Moving Average (TEMA) is a unique smoothing indicator developed by Patrick Mulloy. It is a peculiar composite of a single exponential moving average, a double exponential moving average, and a triple exponential moving average that provides less lag than any of the three components individually. TEMA can be used in place of traditional moving averages to smooth price data or other indicators.
DiNapoli MACD: In contrast to usual MACD, the DiNapoli MACD indicator has the following inputs: 8, 3897,17,5185 and 9, 0503 – instead of 12, 26 and 9, settled for fast and slow exponential moving averages and a "signal line", correspondingly. Moreover, usually the signal line is not displayed on the chart, and crossings of fast and slow exponential moving average, as for MACD, show signals to buy or to sell. The choice of these not integer is bounded by the theory of DiNapoli Levels.
Stochastic Oscillators: Stochastic Oscillator is a technical momentum indicator, developed by Dr. George Lane that shows the relation between the closing price of a currency pair and the price range over a period of time provided by a trader. The stochastic oscillator is plotted as two lines called %K, a fast line and %D, a slow line. Transaction signals occur when the %K crosses through a three-period moving average called the %D.

Slow Stochastic oscillator compares two lines called the %K and %D lines to predict the possibility of an uptrend or a downtrend. In price charts, the %K line typically appears as a solid line, and the %D line appears as a dotted line. The slow stochastic oscillator can be used effectively to monitor daily, weekly or monthly periods. The Slow Stochastic charts the daily stochastic as well as a five-day moving average of a 12-day interval period. This smoothing of the Stochastic Oscillator is an attempt to reduce volatility and improve signal accuracy. Values are less than 20 signal a buying opportunity and values greater than 80 indicate a selling opportunity.

Fast Stochastic Along with the slow stochastic, the fast stochastic oscillator compares two lines called the %K and %D lines to predict the possibility of an uptrend or a downtrend. The fast stochastic is more sensitive than the slow stochastic to changes in the price of the underlying security and will likely result in many transaction signals. In price charts, the %K line typically appears as a solid line, and the %D line appears as a dotted line. The fast stochastic oscillator can be used effectively to monitor daily, weekly or monthly periods.
DiNapoli Detrended Oscillator: The DiNapoli Detrended Oscillator is an indicator that helps traders better view overbought and oversold market conditions. It measures variations of price about a zero line that represents the trend. The trend is defined as a given moving average, and then mathematically computed to make that average a constant, or a zero line. The DiNapoli Detrended Oscillator formula is derived from the close (today), minus the seven-day simple moving average of the close. The result is an indicator that’s powerful and versatile, and it can be applied in a variety of easy-to-use strategies.
Relative Strength Index (RSI): The Relative Strength Index Technical Indicator (RSI), developed by Wells Wilder Jr., is a price-following oscillator that ranges between 0 and 100. A popular method of analyzing the RSI is to look for a divergence in which the security is making a new high, but the RSI is failing to surpass its previous high. This divergence is an indication of an impending reversal. When the Relative Strength Index then turns down and falls below its most recent trough, it is said to have completed a "failure swing". The failure swing is considered a confirmation of the impending reversal.
Average True Range (ATR): Average True Range (ATR) is an effective tool to measure volatility and market noise. This indicator is developed by J. Welles Wilder as the moving average of the true range for a given period. The idea of ranges is that they show the commitment or enthusiasm of traders. Large or increasing ranges suggest traders prepared to continue to bid up or sell down a currency or security through the course of the day. Decreasing range suggests waning interest.
Bollinger Bands: Bollinger Bands are calculated at a specified number of standard deviations above or below the moving average. The Bollinger Bands display the market situation and indicate overbought and oversold markets relative to previous trades. This means that the bands widen when market becomes more volatile or move further away from the average, and move closer to the average during less volatile periods.