Top 3 Benefits of Using Automated Chart Pattern Signals
Education - AxiTrader Team | 01 Mar 2019
Emotion-free trading. For many, it may sound like a pipedream, but the truth is, automation in trading is now more commonplace than ever.
Famous Billionaire trader, Stan Druckenmiller, has suggested that algorithms and quantitative trading have taken over the markets.
But don’t think for a second that this is the domain for billion-dollar hedge funds. The reality is, you and I can get a slice of the action by leveraging the street smarts of automated trading solutions right now.
As the saying goes, if you can’t beat them, you might as well join them.
Autochartist is one such tool that crunches data for you 24 hours a day, 5 days a week.
Autochartist provides the technical, statistical, fundamental and macroeconomic analysis for a wide range of instruments including:
- Global indices
- Forex pairs from majors, minors and exotics
- Precious metals
- And more.
The good news is their analysis is unbiased, timely, easy to understand, and factual.
Technical analysis and chart patterns
Autochartist has a base in chart pattern recognition.
Chart patterns are one of the most common ways traders get started in the markets.
The reason for this is simple. We are all visual people.
Chart patterns resonate quickly because our brains are quick to identify patterns.
For example, if I were to show you a picture of a Ferrari and a Hyundai, your brain would be able to conclude that one of those models is significantly higher priced than the other, even if you had no idea about cars.
And your mind will do this in fractions of a second.
Studying chart patterns across your favourite charts is a great way to identify trading opportunities. But the challenge is the time it takes to scan all those charts.
This is where Autochartist and automation can help take your trading to the next level.
So, let’s take a look at the top 3 benefits of using automated chart pattern signals.
1. You will save time
Chart pattern recognition takes time. There is no doubt about it.
Here are just a few of the main chart patterns you could be looking for on a daily basis across many trading instruments on multiple timeframes.
- Ascending and descending triangles
- Rising and falling wedges
- Head and shoulders and inverse head and shoulders
- Bullish and bearish flags
- Double tops and double bottoms
- Triple tops and triple bottoms
Now multiply that by 50+ trading instruments and say hourly and daily charts and the combination of possibilities are staggering.
Instead, Autochartist has automated all of that for you.
Just the time saved is justification enough to install the Autochartist plugin on your MetaTrader 4.
2. Studying and using chart patterns can be lucrative
Chart patterns have made many traders wealthy beyond their wildest dreams. It must be said, that all forms of trading carry significant risk, so we need to make sure you are aware that the upside may appear great for some, but you can also lose more than what you start with when trading leveraged instruments.
Dan Zanger is one such person who has famously turned an $11,000 starting balance into $18 million in under two years. Granted, he did do this during the tech boom of 1999/2000, but it is still an impressive feat.
Zanger only ever focused on chart patterns to identify his entry and exit points.
Another famous trader and author of one of the most highly recommended trading books of our time is Nicolas Darvas.
Darvas wrote the book ‘How I made $2 million in the stock market’ and did so by creating a chart pattern famously known as the Darvas box technique.
What makes Darvas’ story so incredible is he amassed the $2 million in 1959.
So it goes without saying, all trading carries risk but also the potential of positive returns.
3. The ultimate short list of trading opportunities all day every day
When talking with traders, it becomes clear that building a trading plan to suit your timeframe, financial goals and temperament is key.
Autochartist is not a full trading plan, but it is possibly the most efficient short-list for beginner and professional traders available today.
The key is working their efficiency into your trading plan by adding entry criteria, exits and sensible money management.
Every day, Autochartist does all the legwork of scanning every market across every instrument we provide in MT4.
It truly is the ultimate short list of trading opportunities.
But you must build it into your own trading plan.
In conclusion, leveraging the automation provided by tools such as Autochartist is perfect for time-poor traders who value the trading opportunities chart patterns provide.
The information provided here has been produced by third parties and does not reflect the opinion of AxiTrader. AxiTrader has reproduced the information without alteration or verification and does not represent that this material is accurate, current, or complete and it should not be relied upon as such. The Information is not to be construed as a recommendation; or an offer to buy or sell; or the solicitation of an offer to buy or sell any security, financial product, or instrument; or to participate in any trading strategy. Readers should seek their own advice. Reproduction or redistribution of this information is not permitted.
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