5 Tools for Forex Traders
Technology is improving all the time but the typical Forex trader does not have the time or energy to stay abreast of all the changes. That is a shame because there are plenty of tools out there for Forex traders to utilize in their never ending quest for pips and profits. For more references, have a look at Forex Time’s trading tools section.
The MetaTrader 4 platform is the
2. Commitment of Traders Report
The Commitment of Traders (COT) report is a handy tool for Forex traders to analyze weekly trends in the Forex futures markets. The data is split between commercial traders,
The key is to look for differences between the commercial and
Another tool which can be found at Oanda.com is the
The Forex heat map provided at Finviz.com is another useful visualization tool. Instead of looking at a number of buy and sell arguments, it is much easier to see what is going on between currency pairs and the general trend by looking at a heat map like this one.
5. Top 100 Trader Statistics
This is another great tool provided by Oanda which most traders probably do not utilize. It is worth mentioning that Oanda is a pretty big broker, and this tool shows the top 100 best and worst traders over a given time period.
More importantly, the tool details what currency pairs the best traders made their money on and which currency pairs the losing traders were playing. It also indicates which direction and for how long the top traders held their trades for.
For example, the statistics show that in the last 24 hours, 94% of GBP/USD traders were short, and 99% of them were profitable with an average trade of 1.9 hours and an average pip gain of 10.4 pips. A remarkable statistic given the difficulty of Forex trading.