Since it was first released in 1994, AutoChartist has become one of the most essential tools for forex traders who use technical analysis methods to look for trading opportunities. The software works by scanning price data from the markets to look for developing patterns that signal a winning trade. Testifying to the platform’s effectiveness is the fact that it is used by traders in more than eighty countries to view some two million charts a month. The software offers traders various technical analysis options such as
Regular chart patterns: These are formed by currency price movements and are identified on the charts by having lines connect price points over a certain period. By looking at these patterns, currency traders hope to anticipate the future direction of prices to identify entry and exit points for trades. Examples of commonly used trading patterns are Head and Shoulders, Cup and Handle and Triangles.
To further help you with your analysis of the forex markets, AutoChartist provides traders with the Power Stats application. Using this tool, users can identify the likelihood of downside or upside momentum of a currency price movement, as well as the expected and maximum price movements over various periods, allowing them to more accurately decide on stop loss and take profit order levels to manage their risks during trades.
What are some of the benefits of using the AutoChartist chart pattern identification platform?
- The application scans the markets for profit opportunities 24 hours a day to give traders an early heads up whenever a pattern signaling a profitable trade develops.
- The software provides timely visual and audio alerts whenever a pattern is identified. And every pattern identified is given a ‘quality score’ based on four unique characteristics, including clarity, uniformity and the strength of the initial trend.
- It is ideal for beginning traders. If you are just starting out trading in the forex markets, it might take you years to learn how to identify trading patterns. With AutoChartist, the hard work has been done for you, and the only thing you need to do is decide whether or not you want to enter a trade and how much you would like to risk.
- The platform can accommodate both breakout traders and swing traders by automatically charting resistance and support lines.
- The site provides educational resources to help traders achieve a deeper understanding of trading patterns so that they’ll know how best to use them when they are identified.
- The AutoChartist software can filter out unwanted information by using particular search criteria, allowing the trader to view just the chart pattern data they need to make a trading decision.