End-of-Day Stock Trading Software, Charting & Data Vendors
One of the most popular time frames for technical analysis is the 'End-Of-Day' (EOD) time period. Investors and traders who primarily analyze EOD data are basically longer term investors as compared to the pure intra-day traders. These longer term traders do not want to be distracted by the intra-day movements and only get down to analyze their securities after the market closes. Once you have access to EOD data, any decent charting software will be able to plot weekly, monthly, quarterly and even yearly charts. This is extremely important to determine the dominant trend and timeframe that is in control.
Traditional End of Day Charting and Data Packages
The traditional requirements for an EOD package used to be typically a frontend charting package like MetaStock and an EOD datafeed from Reuters or ProphetFinance. The charting software would normally be a one time purchase but there would be a monthly or yearly recurring cost for the datafeed. These bundles can still be obtained but the disadvantages are that data is normally stored on the user's local harddrive and it can be a hassle if a user requires mobility as the mobile PC has to have all the historical data pre-loaded.
Current Trends in End of Day Charting Software and Data Packages
The current trend is a bundling of both charting and data packages like eSignal or QCharts. They come neatly packaged for a reasonable monthly or yearly recurring fee and all historical data is kept on the data vendors servers. The user just has to request for the relevant data for a particular security and it will be automatically retrieved and displayed. Mobility is not a problem as it is just a matter of loading a standalone frontend charting program which will connect to the internet to retrieve the relevant historical data required. Some vendors like Stockcharts.com have their charting programs online on their websites so that users are able to login through any PC without the need to load any other programs on their computer. It all boils down to personal preference and the best way to decide which EOD package is suitable for you is to take it for a spin. Most charting and data vendors, like eSignal and QCharts, offer a 14 to 30 day risk free trial.
One of the more exciting capabilities of modern charting software is the capability to backtest. This means that if you have a trading system in mind, you can actually input your trading system parameters into your charting software and let it do a simulation on historical data to see how profitable it would have been. Some trading software like Tradestation have very powerful programming capabilities built-in (EasyLanguage) but do note however that it may take a fair amount of programming skills to accurately program a backtest. Some newer analytical and backtesting software like StockWatch Pro and NeoTicker have more intuitive programming modules which can be used with minimum hassle out of the box.