A lot of the new traders hear about price action, chart patterns and how these can help them profit by predicting the future direction of an underlying asset. Ok, but the information about chart patterns is scattered all over the internet, there are different opinions on which patterns are more reliable and subjectivity plays a big role because different traders draw even trend lines differently so you can imagine what happens with more complex chart patterns. On top of all that, it is hard for a new trader to absorb all the information related to chart patterns, to learn them all and to trade accordingly. Well, that can all be over and even a green trader can benefit from chart patterns with the help of a well-respected tool called Autochartist.
What Is Autochartist And How To Use It
To keep it simple, Autochartist is a tool that constantly scans the charts for any patterns and notifies you when it has identified one. No more second-guessing, no more doubting yourself and your chart drawings because Autochartist will find diagonal channels, ascending/descending triangles, rising/falling wedges, pennants, flags, support and resistance levels and even Fibonacci patterns. On top of that, it scans all the time frames simultaneously, a very difficult thing for a trader to do manually. To make the story short, if there’s a valid pattern on your chart, on any time frame, Autochartist will not let you miss it.
There are two versions of the tool: one that goes in your Meta Trader terminal and the other is a web-based application. They have a tutorial for downloading and installing the Autochartist plugin for your Meta Trader 4 (or MT 5) platform but I chose the web application because I found it more user-friendly and on top of that, you can scan more than one asset from a single window.
The story is told by pictures. Every time a chart pattern is identified you can also see a picture of the pattern… but lets see one, not just talk about it:
The list you see at the bottom of the picture contains all the identified patterns (completed or emerging ones) and once you click on any of them, you will see a real-time chart with the pattern drawn on it and on the right-hand side, a panel with a lot of information about the strength of the pattern, the predicted direction, and other useful things.
Autochartist for CFD
Of course, Autochartist can be used for CFD trading as well as Binary Options because it offers predictions about future price movements. However, you must always keep in mind that Binary Options can be a bit tricky due to the extra variable involved: expiry time. When trading CFD, you can close the trade at any time, which means that you can wait almost indefinitely for a chart pattern to produce results. If you expect the price to go outside a channel in an hour but it takes two hours – no problem, you can wait an extra hour.
Autochartist for Binary Options
With binaries, on the other hand, you have to set the expiry before opening the trade, so if you set it to one hour and the price takes two hours to reach the desired target, it means you lost the trade. You might think: Sure, but then can’t I simply set a longer expiry – say two hours? Yes, it could be possible but then you have the risk of price going to the target and reversing before the expiry takes place, which would be a loss again. That’s why in a way, Autochartist is better suited for CFD trading because you have the big advantage of closing a trade whenever you want.
Why Does the Autochartist Suck?
I’m gonna disappoint you a little: it’s a paid tool… Well, that’s normal I think because after all, it is professional software, not just something advertised as great, amazing, priceless, bla, bla. To be honest, I perfectly agree with the decision of the creators of Autochartist to make it a paid tool. It’s simple: if you don’t want to spend time learning and you want somebody to provide you with knowledge at your fingertips, you’ll have to pay for it.
Apart from the fact that you will have to pay a monthly fee, I found this tool a bit complicated to use at first. They throw a lot of information at the user and a newbie could find it hard to digest. Anyway, after some time spent on the website and toying around with the tool, you will get the hang of it.
Why the Autochartist Doesn’t Suck?
All the knowledge incorporated in this tool could take years to master but by using Autochartist, all that learning period shrinks down to a couple of hours (depending on how long it will take you to learn the ropes) and you can be an experienced chartist in no time.
I told you earlier that it is a paid tool; the good news is that they offer a free trial period and on top of that, the subscription is just 29 bucks per month and even lower if you purchase multiple month subscriptions. Not too much if you ask me. However, some forex brokers offer the Autochartist tool free of charge if you open a live or demo account with them. I’m not going to say who those brokers are because I am not here to advertise for anyone, but you can easily find out who they are from the Autochartist website.
Wrapping It Up – Autochartist Is Good For Online Traders!
Although it is a bit hard to use at first, the Autochartist tool is well known and respected by a lot of traders, even experienced ones. It eliminates doubt when identifying chart patterns, support and resistance levels and it has some extra features like market news available directly in your mailbox. You can find out more about it at autochartist.com, you can test it and decide for yourselves if it is helpful or not, but I certainly find it useful for all types of trading, be it CFD (Forex, Crypto, etc.) or even binary options.