The Ultimate Guide to
This is a review of Autochartist, a Forex and CFD (contracts for difference) trading support service. Autochartist is a brand which operates from Cyprus and provides technical analysis support services for the Forex, commodities and futures markets. Autochartist delivers its service using technology partners such as Metaquotes and Econoday. Metaquotes supports the Autochartist plug-in, which can be used on MT4/MT5 trading platforms as a custom indicator. Econoday is a provider of economic news and market data analytics.
Autochartist provides traders with the very latest in automated market-scanning tools which showcase trade opportunities that inexperienced traders would ordinarily not be able to spot. These trade opportunities are strictly based on support and resistance levels. Autochartist provides traders with the following:
- Chart patterns: Common chart pattern formations that are presented by Autochartist include wedges, triangles, channels, rounding tops and bottoms, and other formations that indicate when the price action has hit a top or a bottom.
- Fibonacci patterns, such as Retracements, Extensions, Butterfly, Gartley and ABCD patterns.
- Key support and resistance levels that occur on a horizontal plane.
Autochartist also provides an analysis of market risk and volatility, although this is not a frequently used tool.
Autochartist Interface
The Autochartist interface is only available to view once a user has signed up either for the free trial or for a paid subscription. The snapshot shown below contains segments which have to be used together. These segments are numbered from 1 to 13. A brief explanation of each segment is also provided.
Our Favourites: The tab marked “1” is “Our Favourites” and shows the list of trading opportunities which are active, and which possess the highest probability for success based on a 6-month history of similar trading opportunities.
Trading Opportunities: This tab, marked “2”, showcases the existing opportunities which are found on the charts. Therefore, this tab will contain the chart patterns; Fibonacci-based patterns and key levels of support and resistance across several assets. The trader can filter the results shown here using customised preferences.
Autochartist – Trading Opportunities
Pattern Display: The pattern display is marked “8”. Price graphs for various assets are displayed. These graphs show the exact demarcation of the patterns and the opportunities that they present. This is the chart displayed when the trader clicks on the Active Trading Opportunities tab.
Autochartist – Active Trading Opportunities Chart
What does this pattern display show? It shows the following information:
- The asset on which the pattern is shown. Shown as the symbol on the right.
- The exchange where the asset is traded. Here it is Forex.
- Interval, which refers to the time frame of the chart. Here, the time frame is 15 minutes.
- Type of pattern. In this chart, it is a falling wedge.
- Direction. This is the direction the price breakout is expected to occur, which is upwards (green arrow on the chart) and green arrow on the right pane.
- There are meter bars that indicate the strength for Quality of Signal, Initial Trend, Uniformity, Clarity of Signal and Expected Breakout. The higher the number of bars, the better the overall strength of the signal.
- Forecast price is the price at which the breakout move is expected to occur.
The information gained from the Pattern Analysis can be combined with other information within the price movement pane.
Event Impact Analysis: This tab, marked “4”, reveals the impact of previous news releases on the currency pair tool in a concise, visual presentation. The user should know where the fundamentals are pointing before making technical entries.
Autochartist – Event Impact Analysis
Price Movement Pane: with Quality Indicators and Volatility Analysis
The price movement pane features the volatility analysis tool as well as the price range forecast.
The Volatility Analysis tool gives the trader insight as to the movement of assets in the market. The trading risk for each asset can be assessed.
Autochartist – Volatility Analysis
By clicking the Volatility Analysis tab, a new pop up with 3 tabs is shown, one of which is the forecast of the price range.
Autochartist – Price Range Forecast
The Price Range Forecast section gives the trader some idea as to the possible range of price movements within each time frame. This will guide in the setting of stop loss and take profit targets.
Results Filter: The display of results for each trade opportunity can be customised in the Trading Opportunities Pane by checking or unchecking the relevant checkboxes as shown below.
Autochartist – Results Filter
Active Trading Opportunities: The Active Trading Opportunities show the tradable patterns in the market. These are patterns which are still in evolution and for which entry possibilities still exist.
The tab for trade opportunities that are no longer valid (either ended or expired) is named the Expired Trading Opportunities tab, marked 13 on the interface snapshot.
Interpretation of Trading Opportunities on Autochartist
Patterns displayed on Autochartist can either be Emerging Patterns, Evolving Patterns, Completed Patterns or Expired Patterns.
Autochartist – Patterns
- The first diagram shows an emerging pattern, which has undergone a breakout. The pattern is only tradable when the entry conditions are attained following the breakout.
- The second diagram shows when the target price is reached.
- Sometimes, the emerging pattern does not fulfill potential and it breaks down. This would constitute an expired pattern.
How to Start Using Autochartist
Autochartist presents two ways to start using the service.
- Sign up for a 14-day free trial, followed by the payment of a monthly subscription.
- Using a live account from a Forex broker that supports the Autochartist MT4 plug-in, which allows the plug-in to be used for free.
Benefits of Using Autochartist
Autochartist comes with certain benefits:
- Coverage of several assets listed across several asset classes: Forex, commodities, indices, CFDs and futures.
- Easily spot market opportunities round the clock using the Autochartist tools.
- Novices will find the Autochartist tool to be an indispensable tool for technical analysis.
- A variety of educational materials are also provided on the Autochartist website.
