Here's What You Get with Autochartist
The principle of these patterns is to give a preview of where a trader might expect the next resistance or support lines based on Fibonacci ratios on a price scale. Autochartist identifies 6 different types of Fibonacci patterns based on a number of turning points, these are:
- 3 point retracement
- 3 point extension
- 3 drive
- Butterfly drive
Fibonacci pattern: Gartley
Fibonacci pattern: Butterfly
Fibonacci pattern: ABCD
These pattern formations are based on market psychology according to which support and resistance lines are drawn. It’s a combination of these opposing lines with the price moving in between them that defines each pattern formation, which eventually recognizes potential market opportunities. In total, Autochartist is able to recognize 16 chart patterns based on the slope of the support or resistance lines, which will give you yet another advantage for your trading.
Whenever price touches horizontal support or resistance lines, a touching point is identified, after at least 3 touching points are being recognized on the same line, the key level is identified. With the increasing number of touchpoints, the significance of key level also rises. This can help traders with either identifying potential trading opportunities or setting stop-loss or take-profit levels and therefore ultimately assessing their risk.
This small set of tools helps traders to observe past volatility of an instrument and also price forecast for the hours to come. Based on this information traders can effectively set stop-loss or take-profit levels or build their personal trading strategy.
As there is always a chance for Fibonacci patterns, Chart patterns, and Key level results to be misleading, traders should use them together with their own trading judgment and not rely on them alone. That’s why Autochartist also comes with Quality indicators that determine the reliability of these tools and displays them in an easy to read and user-friendly way.