Chartist

AAA

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.

INVESTOPEDIA EXPLAINS '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. VWAP Cross

    A trading indicator that occurs when the current price crosses ...
  2. Top-Down Analysis

    A method of analysis that involves looking at the "big picture" ...
  3. Fundamental Analysis

    A method of evaluating a security that entails attempting to ...
  4. Parabolic Indicator

    A technical analysis strategy that uses a trailing stop and reverse ...
  5. Technical Analysis

    A method of evaluating securities by analyzing statistics generated ...
  6. Price By Volume Chart - PBV

    A horizontal histogram plotted on the chart of a security, which ...
Related Articles
  1. Active Trading Fundamentals

    Confirming Price Movements With Volume ...

  2. Charts & Patterns

    Western Line Vs. Candlestick Charting ...

  3. Active Trading Fundamentals

    Charting Your Way To Better Returns

  4. Trading Strategies

    Basics Of Technical Analysis

Hot Definitions
  1. Capitulation

    When investors give up any previous gains in stock price by selling equities in an effort to get out of the market and into ...
  2. Turkey

    Slang for an investment that yields disappointing results or turns out worse than expected. Failed business deals, securities ...
  3. Conduit Issuer

    An organization, usually a government agency, that issues municipal securities to raise capital for revenue-generating projects ...
  4. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  5. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  6. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
Trading Center