Chartist

DEFINITION of chartist

Chartist is a technical trader or technical analyst. Also, it is the trader who utilizes charts to assess patterns of activity that might be helpful in making future predictions.

WHAT IT IS IN ESSENCE

Most commonly, chartists use technical analysis in the financial world to evaluate financial securities, the financial instrument’s historical price movements. In order to better predict and to speculate on its future performance. Chartists look out several patterns for as a signal of the future direction of an asset.

They want to find out support and resistance levels or the maximum the markets appear to be willing to let an asset move in a certain direction. In order to mark the best times to buy and sell assets including shares, indices, forex etc. They are different from fundamental analysts, who look at an asset’s current essentials in order to decide on the best time to buy and sell. Chartists almost always believe that price movements in a security are not random. And can be predicted through a study of past trends and other technical analysis.

As technical analysts, they seek to investigate patterns and trends in prices by developing mathematically-based indicators. That indicators have to help predict price trends. Or levels of momentum. Even to suggest the ideal points in the fluctuation of a price when one should buy or sell.

But technical analysis is more than a form of financial astrology.

HOW TO USE

Many traders use both fundamental and technical analysis when planning a trading strategy. Generally, chartists use a combination of indicators, personal sentiment, and trading psychology to make investment decisions. Already proven patterns and trends are the central focus for identifying buying and selling decisions. Envelope channels, and specifically Bollinger Bands, can be one of the most reliable pricing patterns that a chartist look for investment signals.