A chartist (also known as a technical
trader or technical analyst) is one who utilizes charts to assess
patterns
A pattern is a regularity in the world, in human-made design, or in abstract ideas. As such, the elements of a pattern repeat in a predictable manner. A geometric pattern is a kind of pattern formed of geometric shapes and typically repeated l ...
of activity that might be helpful in making predictions. Most commonly, chartists use
technical analysis
In finance, technical analysis is an analysis methodology for analysing and forecasting the direction of prices through the study of past market data, primarily price and volume. Behavioral economics and quantitative analysis use many of the sam ...
in the financial world to evaluate financial
securities
A security is a tradable financial asset. The term commonly refers to any form of financial instrument, but its legal definition varies by jurisdiction. In some countries and languages people commonly use the term "security" to refer to any for ...
. For example, a chartist may plot past values of
stock
In finance, stock (also capital stock) consists of all the shares by which ownership of a corporation or company is divided.Longman Business English Dictionary: "stock - ''especially AmE'' one of the shares into which ownership of a company ...
prices in an attempt to denote a trend from which he or she might infer future stock prices. The chartist's philosophy is that
"history repeats itself".
Technical analysis assumes that a stock's price reflects all that is known about a company at any given point in time.
See also
*
Elliott wave principle
The Elliott Wave Principle, or Elliott wave theory, is a form of technical analysis that finance traders use to analyze financial market cycles and forecast market trends by identifying extremes in investor psychology and price levels, such as hi ...
*
Efficient-market hypothesis
The efficient-market hypothesis (EMH) is a hypothesis in financial economics that states that asset prices reflect all available information. A direct implication is that it is impossible to "beat the market" consistently on a risk-adjusted bas ...
*
Professional designations:
**
Chartered Market Technician
The CMT Association is a non-profit, global, professional organization of technical analysts headquartered in New York City, servicing over 9,000 market analysis professionals in around 80 countries. The CMT Association certifies that an individual ...
**
Certified Financial Technician
Following is a partial list of professional certifications in financial services, with an overview of the educational and continuing requirements for each;
see and :Professional certification in finance for all articles.
As the field of finance ...
References
{{reflist
External links
Automated Technical Analysis ChartingChart Tool Charting app for iOS
ChartSecret.com: Trading Chart Patterns TutorialsThe ChartistChartists use different forms o
Technical analysis
Computer occupations
Financial analysts
Stock Trading Chart Patterns