TeleTrader WorkStation offers a wide range of tools for technical analysis that you can apply to your charts. Many of those tools can be customized to fit your needs. You can even create new analysis tools with the simple, yet powerful TeleTrader Language.

The analysis tools in TeleTrader WorkStation use mathematical techniques, like calculations, statistics, pattern recognition techniques and many more, to calculate indicators and signals and display them on the screen. Most so-called indicators and signals are displayed on the chart as a visual interpretation of market activity.

Note             All indicators and signals, including custom studies, can also be added as study columns to a price page. See Adding, Removing and Customizing Study Columns for details.

Indicators and signals

The analysis tools (studies) in TeleTrader WorkStation are divided into two main categories:

▫       Indicators are calculations that are applied to the price and volume data that you can see in a chart. Indicators visualize the available data in a different way so that you can interpret it more easily. A typical example of an indicator is the Moving Average.

▫       Signals also use calculations on price and volume data, but typically generate signals that help the trader to decide when to buy or sell. Signals often use indicators for their calculations. Typical examples of signals are crossovers (intersection of two indicators). Signals may also include various pattern recognition techniques, that help the trader find typical constellations that have been significant in the past. These constellations are used for example to identify possible turning points in a trend. Many pattern recognition systems are based on the traditional Japanese candlestick formations. A typical example of pattern recognition is the Hammer or the Morning Star.

Indicators and signals can inform you about various aspects of the market, such as its trend, volatility, momentum, market strength, cycle, and so on. Technical studies are used to help traders identify, analyze, and assess market opportunities and risks, determine and forecast market direction, and establish long or short positions. It is always an individual decision which analysis techniques you want to apply to a certain security for interpreting price movements and market trends.

To help you choose between the available studies, several groups have been defined, such as:

▫       Trend: A trend is the direction of a price movement over a longer period of time.

▫       Momentum: Momentum is the speed at which the price moves in a trend.

▫       Volatility: Volatility is the price fluctuation of a security.

▫       There are also spread, cycle, market breadth, volume and other studies.

If you want to get a notification (sound, message or e-mail) when a study crosses the time series or a drawing object, you can use intersection alerts: See Intersection Alerts.

To get notified whenever a new signal marker appears on the chart, use study alerts: See Study Alerts.

The analysis tools (studies) available in TeleTrader WorkStation are listed in the Study Reference. In-depth information about creating your own analysis tools can be found in a separate section about the syntax of the TeleTrader Language.

Note             TeleTrader Software GmbH wants to point out explicitly that all examples in this manual were made up in retrospect and show an idealized situation. Interpretations of indicators and signals are intended as a thought-provoking impulse and should in no way be understood as a recommendation to buy or sell a security.

Learn more:

Inserting Studies

Editing and Managing Studies