Chartist Analysis is a technique that uses the recognition of specific figures based on major pivot points.

Unlike Harmonic Theory, it is not based on the Fibonacci but rather on the pattern itself and help to better understand the psychology of the market at a certain moment. As often in Chart analysis, the goal is to identify the figures, and the entry and exit of a position by the assumption that the price action in the past will happen again in the future.

Here is a list of recognized patterns by the Chartist Indicator

• Double and Triple Top/Bottom : Double and triple top/bottom patterns are generally used to get a thorough idea on how the current stock trend may shift over a particular course of time. The top formations occur in the uptrend whereas their counterparts take place in case of downtrend.
• Cup with Handle : The cup-and-handle pattern is preceded by an upward move, which pauses and sells off. The sell-off is the initial part of this pattern. After the sell-off, the security typically trades flat for a long period of time without any clear trend. The next part of the pattern comprises a rise towards the peak of the preceding upward move. The final part of the pattern, the handle, is a comparatively smaller downward move before the security continues the previous trend of moving higher.
• Head and Shoulders : The head-and-shoulders pattern refers to a specific chart formation which predicts a bullish-to-bearish trend reversal. It is held to be one of the most dependable trend reversal patterns. Notably, it is one of the top patterns that indicates that an upward trend is nearing its end.
• Ascending/Descending Triangle : This triangle shows a strong level of horizontal support or resistance, which, when broken, announces the continuation of the initial trend. As for the other figures, it is better to wait for a pullback to enter.
• Symmetric Triangle : This triangle is formed by weakening pulse and corrections marking a sharp indecision regarding the release of the movement. Although this figure is difficult to trade, it can show good trade opportunities.
• Rectangle : This figure detects periods of range. According to the chartist theory, this figure should be broken in the same direction as the original trend. However, a false breakout in the opposite direction, which makes even better opportunity to trade, is often observed.
• Flag : A Flag is a correction in an initial trend. When the flag is broken in the same direction as the initial movement, it often gives rise to a strong continuation. This is probably the most consistent pattern, even if the entry point is difficult to catch.

8 Patterns

The Chartist indicator recognizes : Double Top/Bottom, Triple Top/Bottom, Head and Shoulders, Cup With Handle, Symmetric Triangle, Ascending/Descending Triangle, Rectangle and Flag.

For each pattern, you can display the Guide lines, the Projection Lines and also choose to display the Volumes.

Various Features

The Chartist Indicator comes with various features such as :

• Audio alert: An audio alert indicates if there is a complete pattern detected.
• Market Analyzer : it is possible to configure the Market Analyzer so that you can find patterns on different time frames and different instruments
• Exposed patterns in C# : this feature is for advanced programmers who want to program their own automatic strategies, backtests or derived indicators.

Smart Toolbar

The toolbar allows you in only one-click to display or hide different chartist patterns detected. So you can focus on one type of pattern, or trade only the last pattern found by hiding the others and get the chart lighter.

The toolbar is also retractable or can be dettached in a separate window to avoid overloading the main toolbar.