The successful trader is one who can read the market and predict its behavior. He must have sound insight into the market and its dynamics. It’s important not only to know what traders are doing, but also why they’re acting that way in order for your strategy or tactics to work best with them.
For example, in Forex trading you need to be able to understand what causes changes in prices as well as how they are affected by different conditions. Also an analysis of fundamental factors like economic growth or contraction which affect markets throughout time period whereas technical patterns provide insights about future trends based on previous movements observed within certain periods.
There are not enough hours in the day to trade, analyze and research all your strategies. This is where pattern recognition tools like Autochartist come into play.
What is an Autochartist?
The Autochartist is a tool that allows you to automatically analyze charts and offer the most probable option of occurance in a market. It can help traders to find the best investment opportunities by comparing their probability of success, based on pattern recognition.
Some things the Autocharist can help with:
- Support and resistance levels are identified to help with trading strategies.
- Carry out risk assessments
- Volatility analysis
- Search of chart patterns
Support and resistance levels
The markets are limited by two different levels on a price chart. The first is the support, which regularly stops falling and bouncing back up, while resistances do just that when there’s an imbalanced amount of buyers or sellers at any given time. The support and resistance levels are two specific points on a chart that indicate when there might be an opportunity for traders to take advantage. If supplies in the market go beyond demand, we see prices bounce back up from their lowest point while if they become too thin with lots of sellers trying desperately just get rid off goods than buyers wanting them as well , then you’ll notice these sharp drops down into previously unknown depths before suddenly popping back out again – sometimes quite violently.
Risk assessments
The risk management component is probably one of the most important aspects in any trading strategy or system.
A risk assessment is an essential process to identify potential hazards and analyze what could happen if they occur.
Although the Autochartist can help you with this point either, you should never forget that no tool can be perfect and will never work if you don’t take into account human psychology and emotions parallel with it.
Volatility analysis
Volatility is the measure of how much a market or security fluctuates. It can refer to both falling prices, but also includes periods where there are sudden rises in value with no warning at all.
For any trader, knowing the likely movements of prices is essential. For Forex traders this means understanding how much volatility there will be at different times throughout each day and hour as well as whether or not. Traders can use the volatility analysis component to determine when they should be trading, and what level of risk is appropriate.
The tool provides an easy representation that will show where prices may move within expected ranges based on historical data.
The visual display makes it easier for anyone interested in investing or day-trading their way towards success.
Chart patterns
For making your job much easier, the Autiochartist can search for chart patterns either.
There are different patterns that traders use to identify market trends and predict future movements. Stock or currency patterns give traders enormous value in studying these formations for their own trading strategies. Forex being just the one example of how they are applied across all markets from commodities right down through stocks and currency!
Autochartist Pros and Cons
The Autochartist has both positive and negative sides like any other tool or system.
Let’s have a look at some pros and cons of it.
Pros
- The tool is an automated trading assistant that does all the tedious work for you saving time and increasing efficiency in your day-to-day operations.
- Some broker clients have an opportunity of free access.
- With Autochartist you will be able to generate fairly accurate early trading recommendations for working on the foreign exchange market.
- It is easy to set up a tool
Cons
- With the Autochartist, beginners will have a much easier time trading. But they can totally ignore all of their worries about education and just focus on technical analysis without any other distractions.
- Autochartist’s graphical analysis can be quite subjective sometimes
- If you’re not a client of a partner broker, then unfortunately the Autochartist service isn’t for you.
How to pick an Autochartist broker
Here are several things you should keep in mind while choosing the Autocharist broker
- one of your major considerations should be if they offer MetaTrader 4 and/or 5 trading platforms.
- make sure that they are fully licensed and regulated by a trading regulatory agent.
- be aware of the features your trading account offers.
Conclusion
So Autochartist provides users with real-time insights into market movements and technical analysis on their behalf. The tool constantly scans the markets, providing price alerts when an opportunity comes up according to preferences based in part by trading strategy at support or resistance levels – keeping you informed so that your investment decisions are always savvy.
The data is constantly scanned so that it will provide insights into what’s happening in the cryptocurrency markets with a notification system when something new comes up.
You can’t make a magic tool from the Autochartist and it’s not going to help you win any trading competitions. The service is useful, but that’s all there really is – no exceptions! As for high results in statistics? They come down simply enough: every pattern has been considered by this software without exception so far as we know (although maybe someday somebody will find something new). So while our advice would be never against using the Autochartist if offered alongside your own strategy.
About Author
George is the Chief Market and Broker Analyst at brokertested.com. Prior to being recruited by brokertested.com, I served SVS Securities as Chief Market Analyst for two years. Earlier, he joined Morgan Stanley in Nov 2013 as Research Analyst.
George is a well-rounded financial services professional experienced in fundamental and technical analysis, global macroeconomic research, foreign exchange and commodity markets and an independent trader.