Home > Glossary > Chartist

Chartist

A chartist is a financial analyst who uses charts and technical analysis to study market trends, patterns, and price movements in order to forecast future market behavior. Chartists focus on visual data, such as price charts and trading volumes, to identify trends, resistance levels, and support levels that may indicate potential trading opportunities. By analyzing historical price movements, chartists attempt to predict future price directions without relying on fundamental analysis like earnings reports or economic indicators.

Example

A chartist analyzing a candlestick chart for a particular stock might identify a head-and-shoulders pattern, predicting that the stock is likely to reverse and move downward.

Key points

• A chartist uses technical analysis and charts to forecast future price movements and market trends.

• Chartists focus on price patterns, trends, and support/resistance levels rather than fundamental data.

• Their analysis is based on historical price action and volume data to predict future market behavior.

Quick Answers to Curious Questions

A chartist focuses on analyzing price charts and patterns to predict future market behavior and identify trading opportunities.

Chartists rely on visual data, such as price movements and volume, to predict future trends, while fundamental analysts focus on financial statements and economic factors.

Chartists use tools like candlestick charts, moving averages, trendlines, and technical indicators (e.g., RSI, MACD) to identify trends and patterns.