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. Parabolic Indicator

    A technical analysis strategy that uses a trailing stop and reverse ...
  4. Price By Volume Chart - PBV

    A horizontal histogram plotted on the chart of a security, which ...
  5. Technical Analysis

    A method of evaluating securities by analyzing statistics generated ...
  6. Fundamental Analysis

    A method of evaluating a security that entails attempting to ...
Related Articles
  1. Active Trading Fundamentals

    Confirming Price Movements With Volume Oscillators

    Use this indicator to validate a change in price direction and moving averages.
  2. Charts & Patterns

    Western Line Vs. Candlestick Charting

    These methods both have their merits, but they may be strongest when combined.
  3. Active Trading Fundamentals

    Charting Your Way To Better Returns

    Learn about the powerful hybrid techniques that take advantage of both technical and fundamental analysis.
  4. Trading Strategies

    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.
  5. Charts & Patterns

    Analyzing Chart Patterns

    Learn how to evaluate a stock with a few easy-to-identify patterns.
  6. Chart Advisor

    Consider Buying These Uptrending Stocks

    Recent pullbacks in these uptrending stocks present an opportunity to get long for another possible rally.
  7. Technical Indicators

    Use Volume And Emotion To Tackle Topping Patterns

    Selling short in a topping pattern offers an advantageous reward-to-risk profile, but it can be hard to find good entry prices.
  8. Active Trading Fundamentals

    Where And How To Trade Energy Stocks

    Energy futures set a high bar to entry for individual traders and investors, redirecting exposure into sector equities and exchange-traded funds.
  9. Trading Strategies

    How to Do the Fundamental And Technical Combo Trade

    Fundamental and technical analyses should be viewed as complementary rather than competing practices. When combined, these two methods can greatly strengthen your game.
  10. Stock Analysis

    A Trader's Look at the S&P 500

    Moving averages are sending an important signal, and it's probably not what you think.

You May Also Like

Hot Definitions
  1. DuPont Analysis

    A method of performance measurement that was started by the DuPont Corporation in the 1920s. With this method, assets are ...
  2. Asset Class

    A group of securities that exhibit similar characteristics, behave similarly in the marketplace, and are subject to the same ...
  3. Fiat Money

    Currency that a government has declared to be legal tender, but is not backed by a physical commodity. The value of fiat ...
  4. Interest Rate Risk

    The risk that an investment's value will change due to a change in the absolute level of interest rates, in the spread between ...
  5. Income Effect

    In the context of economic theory, the income effect is the change in an individual's or economy's income and how that change ...
  6. Price-To-Sales Ratio - PSR

    A valuation ratio that compares a company’s stock price to its revenues. The price-to-sales ratio is an indicator of the ...
Trading Center