Popular Posts

Editor'S Choice - 2019

Autochartist - heavy artillery of graphic analysis

Hello friends traders!

Analytics always took a lot of time and energy, and especially in trading. Despite all attempts to optimize processes, the human resource has always been a limitation. The advent of full computerization made a real revolution in forex analytics, and at the moment automatic analytical tools have not replaced the outdated manual approach, but organically complement it.

Today in this review we will focus on a set of indicators Autochartist - a multifaceted analytical tool, the great capabilities of which are available to every forex trader. We will also discuss options for using the indicator on the web platform and in the Metatrader 4 terminal, the good and bad sides of this product.

Features AutoCartist

Autochartist is the most advanced tool for scanning the market and identifying trade inefficiencies (opportunities to gain an advantage). The tool is a separate software product and is provided by a number of brokers, for example Alpari, Roboforex, Forex4you.

The program includes:

  • Definition of graphic patterns - triangles, channels, the “Head and Shoulders” figure, as well as ascending and descending wedges;
  • Fibonacci levels - Gartley and Butterfly patterns, ABCD, corrections, extensions;
  • Determination of support and resistance levels;
  • Volatility Analysis - the program gives an assessment of current risks and market volatility;
  • Performance statistics - shows which patterns over the past 6 months have been most successful in reaching the predicted levels;
  • Email notifications - provides a technical overview of the market for the next 24-48 hours.

The program is in a state of constant scanning of the market, as a result of which it is able to automatically detect graphic patterns, Fibonacci patterns, as well as support and resistance levels in their still infancy. Of course, the obvious advantage of defining the figures before they are fully formed is to at least establish a restriction for your current trade, or enter the position as soon as possible by the corresponding signal.

Volatility analysis, in turn, provides statistical information on the price volatility of traded instruments, offering a forecast for 15 minutes, 30 minutes, 1 hour, 4 hours and 24 hours. In addition to knowing the volatility indicators, you can decide which instrument is best to trade at the moment, also based on this information you can adjust the stop loss and take profit levels that it is advisable to set for the specified price range.

Installation Recommendations

After you have downloaded and launched the installation file of the program, the AutoCartist will offer you to choose the installation language. If you chose Russian, then this window will follow:

This stage is quite simple, just confirm the agreement with the terms of use and click "next". Also, the installer will suggest choosing a directory for installation, so if several versions of the terminal are installed on your computer, you should choose the one that belongs to the broker that provided this program.

After that, all the necessary files and indicators are already in the folder of the trading terminal. If you run the indicator Autochartist Web Application, then at the first start you will be offered to configure some platform parameters, such as: language, time zone and notification settings.

Use in the terminal and a brief description of the tools

To use the indicator, hold the left mouse button over the icon with the name, and then drag the indicator to the current chart window and release. Since the indicators request data from the Autochartist website, do not forget when the settings window appears allow the use of dll libraries.The system consists of six indicators:

  • Autochartist Chat Patterns

The main parameters that need to be configured:

  • Timezoneoffset - this parameter allows you to synchronize the server time with the broker's time zone. If you received the program from your broker, you do not need to change the default value;
  • Pattern_Count - the number of displayed patterns on the history;
  • Filter_ShowCompleted - set to true to show only completed shapes;
  • Filter_ShowEmerging - set to true to show emerging patterns, and false otherwise;
  • Filter_ShowLegend - show the information panel;
  • Filter_ShowTargetRegian - show the forecast area.

The indicator also provides ample opportunities for adjusting the display of the information panel and trading levels, as well as filter settings, which are analogues of filters for the web platform, which we will discuss later.

The indicator of graphic patterns draws the last several figures on the chart and also gives their estimated analysis.

  • Autochartist Fibonacci Patterns - The indicator calculates Fibonacci patterns. The main set of parameters that requires configuration:
  • Timezoneoffset - server time offset (does not require adjustment if the program is supplied by a broker);
  • Pattern_Count - the number of displayed patterns on the history;
  • Filter_ShowCompleted - set to true to show completed shapes;
  • Filter_ShowEmerging - set to true to show emerging patterns;
  • Filter_ShowLegend - show the information panel;
  • Filter_ShowTargetRegian - show the forecast area;

Also, a set of filter settings allows you to immediately filter the most poorly formed shapes. We’ll discuss the details of filter settings in the section for creating a search query.

  • Autochartist Key Levels - Shows support levels and resistance levels, and also has the following parameters:
  • Timezoneoffset - server time offset (does not require adjustment if the program is supplied by a broker);
  • Pattern_Count - the number of displayed patterns on the history;
  • Filter_ShowCompleted - set to true to show completed shapes;
  • Filter_ShowEmerging - set to true to show emerging patterns;
  • Filter_ShowLegend - show the information panel;
  • Filter_ShowTargetRegian - show the forecast area;

  • Autochartist Market Reports - opens a window with market reports of this kind:

  • Autochartist Volatility - the indicator clearly shows the predicted levels of volatility within the specified periods. This means that in the above picture, the price within an hour is expected to be limited by the channel from 0.6780 to 0.6806, and in the next four hours the lower border will be the level of 0.6757, and the upper one will be 0.6829.

  • Autochartist Web Application - the indicator opens the web version of the platform in the default browser.

The information panels of the indicator of patterns, Fibonacci patterns and key levels have 4 control buttons.

By dragging the first icon, you can change the position of the window on the chart. By lightly dragging the corresponding control arrows to the left or right, you can switch between the found patterns. The number of the current pattern is indicated by a fourth icon, and the countdown itself is in a circle, so that navigation is quite simple and it will be difficult to get lost.

Description of trading patterns

Consider some price patterns and how to use them in trading.

The installation of stop loss and take profit is often based on intuition or subjective vision of the market, as a result of which it is often difficult to justify a certain arrangement of levels. In turn, the developers of the Autochartist indicator recommend using the data of the built-in volatility analysis to set stop levels corresponding to the time period (timeframe). The volatility analysis gives a forecast regarding the expected price range for the following time periods: 15 minutes, 30 minutes, 1 hour, 4 hours, day. as well as the algorithm takes into account the current day of the week and time of day, which allows you to more accurately display the real market conditions.

Autochartist Web Application Interface

To get into the web application, put an indicator on the chartAutochartist Web Application. Or click on the button To come in on the corresponding page of your broker's site.

The trading panel consists of 5 tabs:

  • Trading Opportunities;
  • Volatility Analysis;
  • Performance Statistics;
  • Messages and alerts;
  • Trading community.

The main purpose of the trading opportunities tab is in its name, that is, show the current emerging figures and give a forecast based on these data.

By clicking on the pattern window, you can see an enlarged picture of the emerging figure.

To the right of the graph is a window with the analysis of the quality of the pattern found.

Below is the Results Filter, which consists of graphic shapes with categoriesnew andcompletedFibonacci patterns with categoriesnew andcompleted figures as well as key levels with categoriesbreakthroughs andapproximations. Using a filter from a large number of trading opportunities, you can choose the most interesting for you.

In the search box you have the opportunity to add a new search query, while you have a choice between a group of tools or a single character. The search query will limit the territory for the patterns being studied.

Volatility Analysis

The Volatility Analysis tab provides a forecast of the size of the range of price changes in the intraday period.

Performance statistics

"Performance statistics" shows how many patterns for which symbols reached the predicted values.

Messages and alerts

The Messages and Alerts tab allows you to set up automatic sending of letters with a technical forecast, forecasts confirmation signals and economic news. You can also configure the language and time for delivering alerts from 3 independent options: Asian, European and American sessions.

Trading community

On the tab "Trading community" you will find links to such additional materials:

  • User's manual;
  • Links to download the installation files of the program for different platforms;
  • The official e-book on discipline and risk management in trading;
  • Indicator of the history of the instruments and timeframes;
  • Introductory videos for a visual introduction to the platform.

Create a search query

In fact, the so-called “search query” is not looking for anything. The purpose of creating a query is to filter a selection of characters and parameters according to the relevant criteria of your research. In other words, search queries are needed to investigate which pieces on which pairs work best. By default, you have already configured two filters (search queries), this is a selection of the most popular trading instruments and instruments of the forex market for intraday periods.

The result of a search query is either a predefined group or a group of characters selected in accordance with certain criteria. Each search query applies an additional customizable set of filters to the character selection.

To add a new search, click on the “New Search” button located in the list of search queries.

Simple search

The functionality of “simple search” can be described as “Grouping”, which includes the selection of a predefined group of symbols (as a rule, groups consist of symbols of one exchange or one time period), or enter a list of symbols manually.

After that, you can optionally edit the name of the search.

To enter a list of symbols manually, select the "Symbol" checkbox, and then start entering the symbol name until a drop-down list appears from which you want to select the desired symbol. Now it remains to choose a time period in the drop-down list below and click “Add” to add the tool to the list.

The text box at the bottom of the window is responsible for the name of the search. The name changes automatically and corresponds to the name of the selected group or symbol, but you can also use your own.

Finally, by clicking on "Create a search query" the search will be created and added to the general list.

Advanced Search

To open advanced settings, click on the spoiler with the text "Advanced Search" at the bottom of the simple search settings window.

After that, a list with additional criteria opens, divided into three tabs: Shapes, Fibonacci Shapes, Key Levels. These 3 tabs contain additional settings that you can use to refine your search.

Be careful with setting additional restrictions, too strong restrictions will lead to the fact that the program will find much less trading opportunities, or even stop finding them at all.

Next, we will discuss each section of advanced settings individually.

Figures

  • Price range

This function will be especially useful when trading stocks or CFDs, as it allows you to set the minimum and maximum prices in the corresponding text fields. For example, it may be necessary to filter out too cheap or too expensive stocks.

  • Trend change

The price after the final formation of the pattern can go either in the same direction as it was before, or in the opposite direction. In this case, you can limit the selection only to patterns with continuation in the direction of the trend, or only patterns with the expected reversal.

  • The minimum length of the figure

The length of the figure is measured in bars on the price chart. That is, the fact that the length of the figure is 24 on the chart with a period of 60 minutes means that the pattern was formed during the day.

  • Direction

Allows you to set a limit on only bullish or only bearish signals.

  • Quality indicators

Autochartist uses five additional functions to measure the visual appeal of a pattern:

  • Cleanliness - determines the noise level on the price chart, and specifically, the presence of many spikes will be evaluated below;
  • The initial trend is the strength of the previous trend. The longest and most stable trend increases the importance of this parameter;
  • Volume - an important indicator that measures changes in volumes when breaking through support / resistance levels;
  • Homogeneity - a greater indicator of homogeneity will mean a more uniform distribution of key points on the graph;
  • Breakout strength is the size of a candle breaking through a level of support or resistance.

A more proportional and symmetrical pattern will obviously be more attractive in appearance. The final quality assessment is the arithmetic mean of all other ratings.

Quality is specified by values ​​from 0 to 10, where 10 is the best quality and 0 is the worst. But, of course, the main thing to understand is that these settings set the minimum quality requirements for patterns, that is, with a value of 0, the filter will skip all patterns regardless of quality, and with a limit of 10, only the highest quality ones. However, such high-quality patterns are extremely rare, so you should not set extreme values, especially if you are actively trading forex.

  • Figures

In the advanced section, you can configure the use of 16 types of graphic patterns. Also, clicking on the icon in the lower right corner of each pattern will open a detailed description of the figure.

Fibonacci patterns

The tab for Fibonacci patterns also has a setting for the range, direction and length of the pattern.

  • Quality indicators

The quality indicator has the following settings:

  • Minimum clarity - measured by the "noise" of the graph;
  • Minimum time symmetry - assessment of the factor of correspondence of time periods between key points of a pattern to Fibonacci ratios;
  • Minimum price symmetry - the weight of this parameter depends on the size of the error in calculating the levels.The more accurately they correspond to the real Fibonacci ratios, the greater the weight.
  • Figures

You have the opportunity to create a filter based on six Fibonacci patterns recognized by the program: 3-point correction, 3-point extension, ABCD, Butterfly, Gartley, 3-way.

Key levels

The filter for support and resistance lines also has its own unique settings.

  • Quality indicators

By default, any key level will have at least 3 points. In this case, you can increase this parameter up to 10.

  • Figures

You have the opportunity to limit the study area only to horizontal support levels, or only resistance levels.

Trading Signals from Autochartist

Autochartist application can significantly reduce the time spent studying graphs by automatically detecting various graphic shapes and key levels. An undoubted advantage of this product is the accumulation of history on the effectiveness of patterns over the past 6 months, which makes it possible to deeply analyze your own trading activities.

No manual analytics can compare in performance with an automatic tool that analyzes hundreds of currency histories per day and gives out dozens of ready-made trading opportunities.

For owners of real accounts, Autocahrtist service is provided for free, while others can try the demo version of the product - after filling out a short form, you can use the software product in demo mode for 14 days.

Advantages and disadvantages

Autochartist Benefits

  • The application works in a web browser and does not require the installation of additional software;
  • Simple interface with the division into 5 work areas;
  • Alerts allow you not to miss important trading signals, economic news, as well as special technical forecasts;
  • Autochartist saves you time. The program does the most difficult part of the calculations and gives signals ready for use in trading, and also determines the patterns before they are fully formed, which allows you to make early entries;
  • Deep filter settings allow you to conduct your own research on the quality of inefficiencies in a particular market area;
  • Together with the software product in the corresponding section, for free, many training materials are provided to everyone in the form of documentation, articles and videos;
  • In addition to the web platform and plugins for MetaTrader 4, the AutoCartist is also compatible with mobile devices, which gives you the opportunity to stay on top of your trading activities even on the go.

Disadvantages of Autochartist

  • Free use of the program is not available to customers of all forex brokers;
  • The program will be available only for intraday traders, as well as for those who use technical analysis figures in their strategies;
  • For a complete understanding of the program and the area of ​​influence of each parameter in the settings, it may take a certain period of time to adapt, especially for beginners.
  • From time to time, the program gives out too late forecasts, as a result of which the right moment to enter may be missed.

Conclusion

Having an Autochartist in his arsenal, the forex trader not only unloads his activities, getting rid of the routine work of recognizing graphic figures, but also enters a qualitatively new level of technical analysis.

Autochartist is certainly an indispensable assistant, as it provides all the information necessary for trading, including trading signals and risk accounting. The program also includes several quality functions that reflect such characteristics of patterns as accuracy, visual appeal, and time symmetry, which allows calculating further scenarios of price development with enviable accuracy, as well as significantly improving the performance of forecasts.

Especially for beginners, the program will replace study guide on determining trading patterns on a chartwho can not only test their existing pattern recognition skills, but also try to improve them so that in the future they can find figures “by eye”.

Forum thread

Leave Your Comment