What is Autochartist and how do you use it when trading?
What is Autochartist?
Autochartist is a program which can identify chart patterns using technical indicators such as Fibonacci retracements. It monitors the markets 24 hours a day, alerting you to trading opportunities in real time. Autochartist is often used on the MetaTrader 4 (MT4) platform, and you’ll get it for free when you download MT4 from tastyfx.
Features and benefits of Autochartist
Support and resistance levels are the building blocks of technical analysis, and many effective trading strategies can be based around them. This is because support and resistance are like glass floors and ceilings which are often seen to limit a market's range of movement.
The reason these levels appear is due to the balance between buyers and sellers, or demand and supply. When there is more demand than supply, the price will rise. But, when there is more supply than demand, the price will fall.
Features of Autochartist
There are several features of Autochartist that traders might find useful. These include:
Algorithms that automatically analyze the markets
The main feature of Autochartist is that it can automatically scan the markets on your behalf, identifying new opportunities that you might have otherwise missed. Its analysis is based on algorithms, which it seamlessly integrates into trading platforms such as MT4.
A customizable search pane
The Autochartist search pane enables users to define the parameters of the markets that the program scans. It can be tailored to your individual trading style, or you can use it to search markets that are less familiar and find opportunities that you may not have otherwise thought about.
A built-in price movement scanner
Autochartist can highlight the range in which a price has moved for a given period. This can be done on an hourly or daily basis and it enables traders to clearly see how susceptible a market is to price changes.
Benefits of Autochartist
Aside from its features, there are also a number of benefits to using the Autochartist program. The benefits of Autochartist include:
Chart pattern recognition
The pattern-recognition capabilities of Autochartist are a significant benefit of the software. For instance, Autochartist can analyze different candlestick chart patterns using the Ichimoku Cloud, Bollinger bands and Fibonacci retracements – as well as a host of other technical indicators.
Faster analysis
Autochartist can save you a lot of time that you would otherwise dedicate to scanning the markets manually. Technical analysis and chart pattern recognition are laborious tasks for a trader, and by using Autochartist to carry them out, you can spend more time developing your trading strategies or learning about new techniques that you think might be useful for you.
Flexibility
Autochartist is a flexible product because it is capable of highlighting thousands of potential trades a month in a range of financial markets, including forex. It can do this on a forex trading account on the MT4 platform
Alerts
Autochartist can also alert you to opportunities that you might not usually consider. For example, it might identify that a currency pair – USD/JPY for example – has become highly volatile following an announcement by the US Federal Reserve (Fed) or the Bank of Japan (BoJ).
By providing you with alerts, Autochartist can make it less likely that you will miss out on an opportunity to profit.
What to be aware of before using Autochartist
First and foremost, Autochartist is an automated market scanning program, designed to save you time by analyzing the markets on your behalf. It can alert you to opportunities by using technical indicators such as Fibonacci retracements as part of its market scanning capabilities.
However, Autochartist is not capable of executing trades for you. While it can highlight a potential trade, it remains up to you to open and close your positions, perhaps in line with what Autochartist has suggested or made you aware of.
Equally, while programs like Autochartist can scan the markets on their operator’s behalf, they are not foolproof, and you should carry out your own technical analysis and fundamental analysis alongside Autochartist to confirm any opportunities that the program identifies.
How to use Autochartist
Before you use Autochartist, you’ll need to make a tastyfx account and download MT4. The steps to do this are explained below:
1. Create a live tastyfx account
For a demo MT4 account, visit our MT4 demo account creation page
2. Once you have an account, visit your ‘My tastyfx’ dashboard
3. Click on ‘add an account’ at the bottom right of the screen
4. Select an MT4 forex account
5. Follow the on-screen prompts to complete the download process
Once you have created a tastyfx account and downloaded MT4, open the platform and log in. Autochartist can be found within MT4 by going to the ‘navigator’ window and clicking on ‘scripts’.
Autochartist summed up
- In summary, Autochartist is a program which is capable of automatically recognizing chart patterns and highlighting opportunities to you through alerts
- It can scan the markets for you 24 hours a day, meaning that you have more time to dedicate to trying out different trading strategies and improving your knowledge of the markets
This information has been prepared by tastyfx, a trading name of tastyfx LLC. This material does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. You should not treat any opinion expressed in this material as a specific inducement to make any investment or follow any strategy, but only as an expression of opinion. This material does not consider your investment objectives, financial situation or needs and is not intended as recommendations appropriate for you. No representation or warranty is given as to the accuracy or completeness of the above information. tastyfx accepts no responsibility for any use that may be made of these comments and for any consequences that result. See our Summary Conflicts Policy, available on our website.
