DEFINITION of 'Chartist'

An individual who uses charts or graphs of a security's historical prices or levels to forecast its future trends. A chartist essentially looks for well-known patterns such as head-and-shoulders or support and resistance levels in securities so as to trade them more profitably. Chartists ply their trade in all markets where financial instruments are traded - equities, currencies, commodities and bonds. A chartist is also known as a technical analyst.

BREAKING DOWN 'Chartist'

Chartists generally believe that price movements in a security are not random, but can be predicted through a study of past trends and other technical analysis. A chartist may or may not combine fundamental analysis with technical analysis when assessing whether to buy or sell a stock or security. Those who combine both disciplines maintain that while fundamental analysis helps in deciding which stock or security to buy or sell, the optimal application of technical analysis is in deciding when to buy or sell the stock or security.

RELATED TERMS
  1. Pattern

    In technical analysis, the distinctive formation created by the ...
  2. Forex Charts

    A charting package that allows a trader to view historical currency ...
  3. Technical Analysis of Stocks and ...

    The academic study of historical chart patterns and trends of ...
  4. In And Out

    A trading strategy in which shares of a single security are bought ...
  5. Stock Analysis

    Stock analysis is the evaluation of a particular trading instrument, ...
  6. Trendline

    A line that is drawn over pivot highs or under pivot lows to ...
Related Articles
  1. Investing

    Basics Of Technical Analysis

    Learn how chartists analyze the price movements of the market. We'll introduce you to the most important concepts in this approach.
  2. Financial Advisor

    Trading With Support And Resistance

    Learn more about these two technical analysis levels and how traders use them as signals to buy or sell a security.
  3. Investing

    Fundamentals And Technicals: Together At Last

    It's a big mistake for a fundamental investor to ignore technical analysis. Find out how to become chart smart.
  4. Investing

    The Flaws of Technical Analysis When Picking Stocks

    Is technical analysis of stocks an accurate science, and a worthwhile endeavor?
  5. Investing

    Blending Technical And Fundamental Analysis

    Find out how you can combine the best of both strategies to better understand the markets.
  6. Investing

    Technical Vs. Fundamental Investing - Friends Or Foes?

    Making money in the stock market has been likened to gambling by some, but experienced investors who do their homework usually profit by doing market analysis. However, even experienced investors ...
RELATED FAQS
  1. Is it better to use fundamental analysis, technical analysis or quantitative analysis ...

    Understand the difference between fundamental, technical and quantitative analysis, and how each measurement helps investors ... Read Answer >>
  2. Why is the Exponential Moving Average (EMA) important for traders and analysts?

    Discover why chartists and technical analysts might use an exponential moving average (EMA) instead of a simple moving average ... Read Answer >>
  3. What is the difference between fundamental and technical analysis?

    These terms refer to two different stock-picking methodologies used for researching and forecasting the future growth trends ... Read Answer >>
  4. What are the most popular forms of technical analysis?

    Technical analysis approaches the market by studying price and volume. It yields radically different insights and conjectures ... Read Answer >>
  5. When and why are technical indicators useful?

    Discover what technical indicators are, when they are useful and how their specific design limits their meaningfulness to ... Read Answer >>
  6. How do I start using technical analysis?

    Technical analysis is a method of analyzing securities by evaluating current and historical price and/or volume activity. ... Read Answer >>
Hot Definitions
  1. Private Placement

    The sale of securities to a relatively small number of select investors as a way of raising capital.
  2. AAA

    The highest possible rating assigned to the bonds of an issuer by credit rating agencies. An issuer that is rated AAA has ...
  3. Backward Integration

    A form of vertical integration that involves the purchase of suppliers. Companies will pursue backward integration when it ...
  4. Pari-passu

    A Latin phrase meaning "equal footing" that describes situations where two or more assets, securities, creditors or obligations ...
  5. Interest Rate Swap

    An agreement between two parties (known as counterparties) where one stream of future interest payments is exchanged for ...
  6. Custodian

    A financial institution that holds customers' securities for safekeeping so as to minimize the risk of their theft or loss. ...
Trading Center