CMC Markets, an independent financial services provider, has launched a new pattern recognition tool in Australia to help traders sort data, identify patterns and execute trades with ease.
The tool identifies both completed and emerging patterns over short or medium time frames and ranks the quality of the chart signals based on technical indicators such as moving averages.
Pattern recognition tool has multiple applications and can assist clients to work out where to enter, set stop loss orders and set profit targets. It can be as advanced as complex algorithms or involve nothing more than a pencil and a ruler, according to the CMC Markets.
Once patterns have been identified, it is then up to the trader to decide whether to execute the trade. They can take long or short positions based on chart signals. In periods of volatility where markets appear to be moving sideways, identifying emerging patterns can assist in generating returns.
The integrated software can also educate traders who don’t currently use technical analysis as part of their technique, with free video tutorials and an internally-written software guide.
CMC Markets chief market analyst David Land said one of the biggest benefits of the software is it allows traders to scan a wide variety of markets swiftly and rank them.
"By integrating it onto our platform, traders who already trade confidently but are currently using third party applications can now scope out simple or complex patterns then execute positions with ease," said Land.