What is a chartist?

More precisely known as a technical trader or technical analyst, the Chartist deals with the activities of graph and graph preparation to predict future trends on the market. Historical financial data are used as the basis for mapping activity. The Chartist can collect data on any stock, bonds or commodities and portray information into a formula that can be easily understood by almost any investor.

Chartists say that the graph of past financial activities of the security can be identified by repetitive trends. Part of the process will mean identifying intervals between the rise and a decrease in value per unit, as well as the actual increase and price drop. This strategy considers the Chartist to determine when to buy or sell safety so that the investor manages to grow his portfolio rather than hit when the unit price begins to fall.

While the Chartist is considered to be Essence to the task of understanding the historical aspects of the market not all investors believe that useMapping itself will bring enough information to justify a specific transaction. Other financial analysts tend to incorporate other factors such as political and economic shifts that may or may not exist in the past.

However, the work of a chartist can add a much needed element to understand past market trends. When dealing with relatively stable security, the planning of future investment activities can be extremely useful information that is compiled and presented by the Chartist. However, it is important to realize that the work of the Chartist will be the most effective in dealing with trends in the market sector, which has not made any real changes in the proportion of supply and demand for this market. In addition, the potential for serious changes in politicsal and economic market conditions should be minimal to make mapping truly reliable and effective.