Broker to Trading

Plus500 has a clear trading platform. This means it is straightforward to see and access the functionality of the platform. It uses larger fonts and space to help clarify what is relatively complex information. The chart has parameters which can be adjusted, like all trading platform charts. However, despite having a clear layout, Plus500 also offers a solid number of these features, with time frames from tick to 1 week, 7 charts price types and 105+ technical indicators, which is a relatively large number of indicators for any platform (the app platform has less indicators).

So how does this potentially affect the trading experience ? Having a wide range of technical indicators means that the trader can use different indicators in varying market conditions and can test out approaches to trading, as long as they understand the indicator. There are plenty of books and resources which go into detail about indicators, 'The Encyclopedia Of Technical Market Indicators' in particular examines a wide range.

A technical indicator can simply indicate that other market participants are using it. This can be seen in the way that market price action tends to respect indicators signals, however they may do so in unpredictable ways, meaning that they may simply add a billiard ball effect, as they become another influence on the market which changes price direction and velocity, helping to create the complexity of movement seen in markets such as Forex. There are some indicators which are used extensively and thus these may have a market moving effect in and of themselves. This can provide a rationale for using them outside of a desire to have a predictive tool. The trader may find that a technical indicators may work, and then not work, if they are using it to provide trading signals. More exotic indicators may help provide a further window onto the market and may be effective to some extent in different market conditions, like all indicators.

Plus500 identifies a core group at the top of its platform list, namely Bollinger Bands, EMA - Exponential Moving Average, MACD, Moving Average, Moving Average Deviation, Moving Average Envelope, RSI and Volume Underlay. RSI, Bollinger Bands and MACD can be seen as the core group of indicators a trader may use. The Moving Average set reflect the importance of moving averages, as they can provide a different, visually clear take on the market compared with other indicators and can be used to filter indicators.

However one potential issue with indicators, is using them in ways which creates a complex set of rules, rather than using them to try and simplify market information. Moving averages (MAs) can be an effective way to examine the billiard ball effect, as the market can in an uncanny (but not very surprising) way respect them and then do something different.

To add a moving average, the trader selects 'Moving Average' from the drop down list of indicators on the chart. The trader can set the parameters for the moving average, including the period and type, by pressing on these figures on the added indicators at the top of the drop down list. The types of moving average include simple, exponential and a range of other types. To remove the indicators from the chart, the trader deletes it from the drop down list, by pressing a delete icon on the list of added indicators at the top of the indicator drop down menu. The EMA is an Exponential Moving Average, which is a type of weighted moving average, to give more prominence to recent data.

The Moving Average Deviation shows the deviation of a given Moving Average from the price and is shown at the bottom of the chart. The Moving Average Envelope creates a shift in the moving average by percent or points - it creates a channel around the moving average, which the trader can use to see how the moving average is affecting price action. So together or separately, the Deviation and Envelope can show the significance of price reaction to moving averages, in terms of deviation and patterns formed as price changes with respect to the moving average.

The Volume Underlay shows the volume being traded under the chart, and is used as an indicator for factors including changes in volatility.

In this layout can be seen capacity of the Plus500 platform to combine complex information and choice in a way that allows the trader to use it without getting bogged down in navigating the platform and using its functionality. This is a platform which can be used by a range of traders, particularly those who wish to use a technical approach to trading and want a range of tools to do so.