Can you automate forex trading analysis?

Most forex traders ask the alternative to conduct forex trading successfully without undergoing repetitive, tedious, and boring tasks. Examples of tedious tasks are manually calculating and analyzing technical indicators. What if you are deficient in Mathematics?

Yes, you can automate forex trading analysis. An automated forex trading analysis allows you, a forex trader, to evade cumbersome manual trades. This article dives into examples of technical indicators whose computations you can calculate automatically.

You will find the best software to automate forex trading analysis. What is more? Let’s dig into the main content to find out.

What technical indicators can you get in a typical forex trading software?

Trading software can be designed to calculate any technical indicator. The most common technical indicators in trading software are:

  1. Relative strength index (RSI)
  2. Stochastic oscillator.
  3. Average directional index (ADX).
  4. Moving average convergence divergence (MACD).
  5. Bollinger bands.
  6. Fibonacci retracement.


RSI is a trend indicator whose calculation produces readings between 0 and 100. The readings are ups and downs expressed from a mean line in a curve.

The relative strength index indicates overbuying and overselling. The most typical implications are 30 or below reading for market overselling.

Likewise, a 70 and above reading indicates market overbuying. It would be best to buy the currency pairs when currency pair prices fall below 30 on RSI.

Stochastic oscillator

Like RSI, its readings range between 0 and 100. A reading below 20 denotes overselling, whereas an 80+ reading signals overbuying.


It denotes trend and momentum with values ranging from 0 to 100. A 20 and below reading signal a weak trend, whereas an above 50 reading shows a strong trend.


It is an indicator with two lines, histogram, and two MACD lines on the histogram’s opposite sides. Either MACD lines’ displacement from the mean position denotes a sell or buy signal.

Bollinger Bands

They indicate market volatility. They have two standard deviation lines on either side of a simple moving average line. For instance, you should extend trading when the bar ends above the upper band.

Fibonacci retracements

They show resistance and support points. After getting the length between the trough and the peak, divide the value with one of the Fibonacci ratios. Typical ratios are 23.6%, 38.2%, 50%, 61.8%, and 78.6%.

What is the most familiar reason for automating forex trading analysis?

The main weakness of most indicators is that they give fake signals as soon as the market starts trending.

That is a significant reason to evade manual calculations; they force you to rely on few indicators because manual trading cannot accommodate calculating many indicators at a go. The best solution is automation, as explained below.

What is the best automated forex trading software?

The best automated forex trading analysis software is mt4. It houses most of the technical indicators. And the best part is that the software tracks market changes for you. This relieves you of the tedious, repetitive technical indicators calculation.

The software is a product of MegaQuotes Software Inc and works across multiple operating systems. You can conduct mobile and desktop trading at your convenience.

All you do is set the forex trading parameters for 24 hours trading. If you have a challenge using technical trading software, contact your forex broker for support.

You can also create a personal analysis tool. The programming languages primarily used to create a forex trading analysis software are Python, Java, MQL, and C#.

For instance, below is a Java program to calculate RSI after finding SMMAs:

    public static double[] calculateRSIValues(Candlestick[] candlesticks, int n){

        double[] results = new double[candlesticks.length];

        double ut1 = 0;

        double dt1 = 0;

        for(int i = 0; i < candlesticks.length; i++){




            ut1 = calcSmmaUp(candlesticks, n, i, ut1);

            dt1 = calcSmmaDown(candlesticks, n, i, dt1);

            results[i] = 100.0 – 100.0 / (1.0 +

                    calculateRS(ut1, dt1));


        return results;



You can and should automate forex trading analysis to avoid encountering fake signals that several indicators show as the market trends.

Besides, they relieve you of repetitive, tedious calculations. You can use software like mt4 or create personal computational software using Python, MQL, C#, or Java.



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