How to Spot and Choose the Best Stock Chart Pattern Recognition Software

Stock chart pattern recognition software has become incredibly popular amongst traders of all backgrounds because it handles the entire analytical process for you. This means it scours the market looking for high probability trading opportunities and notifies you of them accordingly so that you know exactly where and when to invest as well as what you can expect from that stock in terms of appreciation so that you can plan accordingly.

Given the popularity of this technology, however, there are now more programs on the market vying for your attention than ever; so after six years of using this technology myself on a daily basis I’ve put together this checklist of things to look forward to get the absolute best stock chart pattern recognition software.

First off, I recommend avoiding the free software options. This isn’t because I’m trying to sell you want something myself, but instead it’s because these are notorious suspects for pump and dump schemes.

This means that there is no algorithm behind the program but instead it’s someone who makes their own stock picks and then invests in it themselves to go ahead to preach about that stock’s soon to be profitable future in order to get a lot of outside traders on board and drive up the cost.

While the price does increase for a time, this is just by way of volume trading and at the last minute when that stock is at its peak, that investor who sent out the pick pulls out taking the greatest profit and leaving everyone else with the pieces as that stock begins to tumble down.

While I recommend a stock chart pattern recognition software of the premium nature, I recommend going with one which has a full moneyback guarantee on it. This is a sign of quality and any publisher who is unwilling or unable to back up their program with this guarantee does not deserve your time or money. This also affords you the opportunity of receiving a handful of picks at no cost and risk free because you have the option of getting out after you gauge their performances in the real-time market.

You can also take a look at the website of the stock chart pattern recognition software as a reflection of its quality. If it looks like some shoddily put together site then this would raise some red flags. You can also look at the kind of customer support which they offer which would ideally be live chat or phone support, but you cannot discount e-mail support when that is the norm for a lot of product publishers these days. Truthfully many of them are very responsive when it comes to e-mail support, so if you have any concerns you can send them a test e-mail and gauge their response time accordingly.

I also recommend that you go with stock chart pattern recognition software which is specific in the values of stocks which it targets. Anticipating behavior of penny stocks is completely different than anticipating behavior of greater priced, more established stocks because there is far less trading influence required to send the price of a cheaper stock soaring or plummeting in the short term.

While I don’t necessarily recommend one over the other, I do recommend that you go with one which exclusively targets one or the other and doesn’t attempt to stretch its algorithm to anticipate behavior of a whole array of stocks in terms of value.