USER MANUAL - Autochartist
Contents
1. 10 4 4 ADVANCED CRIME RIA 10 4 5 PATTERN CHARACTERISTICS 10 4 6 PAT AERO OA TY eee t 10 4 7 11 5 OMM Ed RE N EE EE E T EEE 12 6 UPDATING RESUL TT 14 7 VIE WING RESULT IMAGES 2 Eae Xs aO 15 8 DELETING A SEARCH nn ne aaa 16 9 APPLICATION SE LENS a 17 iT 4 ecutochertist com 1 Introduction Welcome to the Autochartist com help section Please use the menu on the left to navigate to the required help area Technical Analysis refers to the study of financial markets based on price movements It uses the assumption that the price of a share reflects all information about that share including market sentiment as well as its perceived value Charting refers to technical analysis that 15 performed through careful inspection of share price data for identification of well known patterns that emerge in share prices for example head and shoulders channels triangles and wedges Triangle ly Lui 30 06 2006 16 07 2002. Category FORE All Intraday Exchange C5 Symbols Symbol Characteristics Quality Patterns LOK L Cancel You can search for patterns on a specific exchange specific symbols predefined category of instruments There Autochartist service will return a maximum of 100 results independent of the period that 1s specified 4 1 Search by Category A Category of symbols is merely a predefined logical group of symbols For example a category called Forex Intraday would contain all pattern occurrences on the Forex market that had been identified on intra day time data interval To search for patterns by category select the Search by Category radio button and select the group you want to search in the drop down menu 4 2 Search by Exchange To search for patterns on an exchange select the Search by Exchange radio button and select the exchange on which you want to search Furthermore it 15 necessary to select the time interval on which you want to search for patterns For example selecting NYSE 30min will search for pattern occurrences on shares listed on the New York Stock Exchange using 30 minute intra day data a asutochartist comr 4 3 Search By Symbol To search for signals on a specific symbol select the Search by Symbol radio button and enter the details of the symbol you want to look for Autochartist does not verify the validity of the symbols entered if an incorrect symbol is en
3. predicted region that the price could reach The predicted region 15 not displayed for emerging patterns FOREX USOCHF 30 minute Continuation Channel Down ey ltochertiset Exchange Symbol 1 Partem channel Down Pattern End 29i8 10 30 Trend change Continuation Length 130 Diraction Quilty Initial Trend Uniformity L Clarity Breakout Volume Not Applicable 23 8 12 00 24 8 12 00 25 8 12 007 8 0600 28 8 06 00 It is important to remember that although the emerging patterns are cached in Emerging Pattern section of the results the results displayed may not exist any more if the price graph changed in such a way as to change the shape of an emerging pattern You will be notified of this situation when you double click an old emerging pattern in order to view its graph 15 H j 4 8 Deleting search To delete a search screen click on the Delete toolbar button This will remove the current search off the screen The application must have at least one active search screen so 1f you want to deactivate Autochartist completely simply logoff by clicking the Logoff option on the File menu 16 H j 4 9 Application settings There are configuration settings that can be set on the application Click on the Options Setting menu item to bring up a setting
4. 6 02 08 2006 17 08 2006 24 8 12 00 25 8 12 00 27 8 06 00 28 8 06 00 1 6225 1 6900 1 6875 1 6850 5 500 1 6825 1 6800 ich 1 6775 5 000 1 6750 1 6725 1 6700 Head and shoulders Channel 1 2475 1 2450 1 2425 1 2400 1 2375 1 2350 1 2325 1 2300 24 8 12 00 25 8 12 00 27 8 05 00 28 8 05 00 1 08 2008 03 0772005 017 0672006 Chart patterns are well documented in technical analysis literature and are based on psychological phenomena that occur between the buyers and sellers of financial instruments in liquid markets Pattern formations do not form a trading system but rather provide an indication of the future trend of a share as the price breaks key psychological barriers in the form of support and resistance lines iT 4 ecutochoertist com 2 Pattern Types There are numerous types of patterns all named according to the shapes that the price graphs form between the support and resistance lines The general types of patterns include Triangles Channels Wedges and Head and Shoulders 2 1 Triangles Symetrical Triangles Ascending Triangles Descending Tangles A triangle 1s formed between converging support and resistance lines A negative sloping resistance line indicates a reducing level of profit taking or more uncertainty about the value of the stock With a positive sloping support line the price levels are squeezed into a corner Once the support or resistance line is broken pressure that has b
5. 8 12 00 25 8 12 00 FE 06 00 28 8 06 00 Similar to a channel a rectangle 15 a pattern formed between horizontal support and resistance lines Rectangle AE 35 0 uy 32 5 IT Us LI 7 30 0 01 06 2006 03 07 2006 01 08 2006 01 09 2006 Rectangles and Channels are sometimes referred to as Flags and Pennants depending on the slope of the initial trend and the slope of the breakout A Flag would be defined as a Bullish Continuation Channel Down or a Bearish Continuation Channel Up A Pennant would be defined as a Bullish Continuation Triangle or a Bearish Continuation Triangle 4 asutochartist com 2 3 Wedges Wedge Continuation Wedge Reversal Wedges are similar to triangles in that these patterns are formed between converging support and resistance lines However where the support and resistance lines in a triangle have one positive and one negative slope the support and resistance lines of a wedge would both have either a positive or negative slope Wedges with positive slopes are called Rising Wedges and ones with negative slopes are Falling Wedges Rising Wedge 1 6925 1 6900 1 0875 1 6850 1 6825 1 6800 1 6775 1 6750 1 6725 1 6700 248 12 00 25 8 12 00 2718 06 00 2B 8 06 00 Falling Wedge 1 285 1 284 1 283 1 282 1 281 1 280 1 279 1 278 1 277 1 276 1 275 NE 12 00 2B B 12 00 29 8 12 00 29 8 12 00 The most common wedges are found a
6. Exchange Name of the stock exchange on which the share can be found If all patterns in your search were identified on the same exchange this column will be hidden Symbol Ticker of the symbol on which the pattern was found e Interval Time interval of the data on which the pattern was identified If all patterns in your search were identified on the same interval this column will be hidden e Pattern Name Name of the identified pattern For a description of the different types of patterns see Pattern Types Direction Direction in which the breakout occurred A means the price broke through the resistance line A Farrow means the price broke through the support line In the case of emerging patterns blank arrows 1 and are used to indicate the anticipated breakout direction e Time Time at which the pattern broke through either the support or resistance line Trend Whether this pattern is a continuation or reversal pattern e Length Length of the pattern in bars For example a pattern of length 30 found on 60 minute data would mean that the pattern was formed over 30 hours e Quality The overall quality of the pattern this 1s the average of all the other quality indicators Initial Trend Quality of the trend preceding the pattern formation A longer more steady initial trend 1s an important component of a high quality pattern e Uniformity Indicates how uniformly s
7. ge Channel up Triangle Triangle Triangle Triangle Triangle Falling Wedge Falling Wedge Rising Wedge Rising Wedge Triangle Channel up Falling Wedge Triangle Trianale Pennant Falling Wedge Triangle Descending Triangle Rising Wedge Descending Triangle rh anmnmal Pin i i i t i i a 2918 06 45 2918 04 00 2918 04 00 2918 03 15 zur 02 00 2918 01 00 20 8 22 00 2518 22 00 26 6 21 00 20 6 20 30 2519 21 00 20 8 19 00 2018 18 45 20 6 16 30 25118 17 00 25118 15 00 25118 13 15 zal 11 30 2818 12 00 FRIR 11 3 2976 10 00 zur 10 00 2918 10 00 2918 10 00 219118 10 00 2918 10 00 20 S 1nmnn Contir icantir Rever Contir Contir Contir icantir Contir i antir i antir icantir icantir i antir Contir Rever Contir i antir i antir r nnkir gt i antir Contir icantir icantir Contin e Complete patterns list the pattern occurrences that have broken through either the support or resistance lines e Emerging patterns list the patterns that have not yet broken through giving you an opportunity to be pro active in opening a position on the market 12 j 4 8 02 00 2976 04 00 29 8 06 00 25 8 08 00 29 8 10 00 p ze 30 breakout yet ee _ The following is an explanation of each of columns in results e
8. han a Double Top or Double Bottom Look for a strong initial trend and a significant breakout in order to confirm the reversal H j 4 3 Trends and breakout An important measure of the quality of a pattern is the trend that precedes it It does not matter whether the trend 15 bullish or bearish but the consistency and duration of the initial trend partly determines the well formedness of the pattern Strong initial trend Weak initial trend The pattern 15 said to have broken out once it has crossed either the support or resistance line If the pattern broke out in the same direction as the preceding trend it is called a continuation pattern If breakout 15 in the opposite direction it 15 called a reversal pattern Strong breakout Weak breakout For example a pattern described as Bullish Reversal Triangle would mean that it is a bullish signal that is the breakout was through the resistance line upward Because it is a reversal pattern that means the preceding trend was in the opposite direction as the breakout that is the preceding trend was bearish H j 4 4 Searching for patterns In order to search for new patterns click on the New toolbar button This will bring up a search dialog in which you can specify your search criteria Search Criteria sutochertist Search Mame F REX Search By Select Group amp
9. i pla cutochoertist conm USER MANUAL Copyright 2006 MDIO Software 0 ph ecutochoertisrt com TABLE OF CONTENTS 1 ISO PILLE E e 1 2 PAFTERN DS A TR NET TER RD TEINTE IE 2 2 1 SR IE ICE KKM Aw m A 22 CHANNELS AND RECTANGLES cccscoscscoscsceccsceccsccescscescscescscescscesesceseecesescssescscescecescesesces 3 23 NV DOE 5 2 4 HEAD AND SHOULDERS ERa 6 2 5 DOUBLE TOP amp DOUBLE BOTTOM ccccceccececcsceccsceccsceccscecescecescscescscsescesescucescecescesaseucs 6 2 6 TRIPLE TOP amp TRIPLE BOTTOM ccccccccsceccsceccsceccccscescscuccscesescecesceceecececcscesescesescusescesescess 7 3 TRENDSANDBREANOL 2 Tas Ue soda a eee sc 8 4 SEARCHING FOR PATTERNS eee eee eee eee eee ee eee e eeese sese ese seess ese ses esses 9 4 1 SEARCH BY CATEGORY ste 9 4 2 SEARCH BY EXCHANGE 9 4 3 SEARCH BY SYMBOL
10. paced the price turning points are that touch the support or resistance lines e Clarity How clear the pattern 15 that 15 the lack of random price movements during the formation of the pattern Breakout The decisiveness with which the price broke through the support or resistance line This quality measure 15 irrelevant for emerging patterns Volume The relative amount of increase in the trading volume at time of breakout through the support or resistance line This quality measure 15 irrelevant for emerging patterns 13 Ip 4 asutochartist com 6 Updating results Results are updated automatically by the application When new results come notification will appear in the bottom left of the screen informing you of this and providing a clickable link to the appropriate page on the Autochartist application eutochnertist g Hew Results FOREX PL p 0 Complete b Emerging New items in the list of results are identified by the yellow bar llin the first column of the results Symbol Interval Pattern Time Trend Len Gualit ALDLISD 15 minute Rising Wedge 2618 10 30 Continuation 90 If you wish to update results manually click on button in the toolbar 14 I 4 ecutochertist com 7 Viewing result images Double click a result to view its graph the image opens in a separate window providing more details about the result The grey block on the image represents the
11. rent quality indicators and how they interact with your existing trading strategy 4 7 Patterns One may select the patterns by which one wants to search by editing the list of patterns found under the Patterns tab in the search screen Unselect the patterns that you do not wish to search for Search Criteria autochertist Ascending Triangle Descending Triangle Triangle Channel Down Channel up Falling Wedge Rising Wedge Rectangle Head and Shoulders Inv Head and Shoulders Triple Top Triple Bottom Flag Pennant Symbol Characteristics Quality Patterns Cancel 11 pela 4 ecutochertist com 5 Results The results are split into two main sections complete patterns and emerging patterns gi Chart Patterns autochertist EB Settings Help X FOREX Complete Patterns USDIP LISP AD EP JP Y LISD UP EURUSD EURUSC USOJFY USDIP EUR EURUSD EUIRUSD EP PY BP JP EUIRUSD fSBPUSD USD HF EURIPY FI IB 1P Interval 15 minute 15 minute 30 minute 15 minute 15 minute 60 minute 30 minute 60 minute 60 minute 30 minute minute 30 minute 15 minute 30 minute minute 15 minute 15 minute 30 minute minute minute Emerging Patterns Interval 15 minute 15 minute 15 minute 15 minute 15 minute 15 minute ib Descending Triangle Falling Wedge Falling Wedge Head and Shoulders Falling Wed
12. s breakouts in the opposite direction of wedge That 15 bearish breakouts in a rising wedge and bullish breakouts in a falling wedge 4 ecutochertisrt com 2 4 Head and Shoulders Head and Shoulders Inverse Head and Shoulders A Head and Shoulders pattern describes a share price movement that depicts the head and shoulders of a person Head and Shoulders is a reversal pattern from a bullish trend to a bearish trend The pattern starts when the price graph crosses the support line upwards before formation of the left shoulder and is completed once the graph crosses the support line downwards after formation of the right shoulder Head and Shoulders 1 06 2006 03 07 2006 01 08 2006 An Inverse Head and Shoulders is similar in shape except that it 15 upside down and indicates reversal from bearish to bullish trend 2 5 Double Top amp Double Bottom Double Top Double Bottom Double Top and Double Bottom are reversal patterns that touch either the support or resistance lines twice before reversing their trend Look for a strong initial trend and a significant breakout in order to confirm the reversal H j 4 2 6 Triple amp Triple Bottom Triple Top Triple Bottom Triple Top and Triple Bottom are reversal patterns that touch either the support or resistance lines three times before reversing their trend This 15 a stronger indicator of a trend change t
13. s window Use separate window for each image select this option if you want every image that you double click to open in a separate window e Complete Pattern Notifications Settings for when a complete pattern has been found o 1 Play Sound select this option if you want the application to play an audible sound when a complete pattern 1s found 2 Show Window select this option if you want the application to display a popup window when a complete pattern 15 found Emerging Pattern Notifications Settings for when an emerging pattern has been found o 1 Play Sound select this option if you want the application to play an audible sound when an emerging pattern 1s found o 2 Show Window select this option if you want the application to display a popup window when am emerging pattern 15 found e Notification Window Display Sets the duration the notification popup window 15 displayed when a new chart pattern 15 identified Connect automatically select this option if you want the application to automatically connect to the Autochartist service when it 1s started Connection Timeout set the timeout that the application will use when connecting to the Autochartist service For dialup users this should be set high e Data Timeout set the timeout that the application will use when downloading information from the Autochartist service For dialup users this should be set high e Proxy Settings If you make u
14. se of a proxy server set the proxy connection options in the Proxy section of the settings window Please ask your network administrator for help with these settings 17
15. tered then no patterns will be returned 4 4 Advanced Criteria Once you have entered which symbols exchanges or groups to search you can adjust the more advanced search criteria by switching between different tabs on the search window Symbol Charactenstics Quality Patterns 4 5 Pattern Characteristics On the pattern characteristics page you can select the direction of the signals you want bullish bearish both the trend change of the signals continuation reversal both the length of the pattern in bars as well as how far back you want to search history of pattern Search Criteria sutochertist Direction Any Trend Change Any Length Any Symbol Characteristics Quality Patterns M Cancel 4 6 Pattern Quality Autochartist provides quality indicators for all patterns that have been identified The search facility allows one to specify the minimum quality of the patterns that are displayed 10 4 cutochoertist com Search Criteria autfochertist Clarity Ari Uniformity Any Initial Trend Ary Overall Quality Ary Breakout Strength Any Volume Increase Any Symbol Characteristics Patterns X Cancel One 15 tempted to set all the quality indicators to maximum values but this results in very few opportunities it is very rare to find perfect patterns With time you will start to get a feel for the importance of the diffe
16. uilt up as a result of uncertainty is released and a certain amount of momentum 1s added to the price change in the direction of the breakout 5 000 i Il 5 500 2 020 Triangle 4 L Nel qe 30 06 2006 18 07 2006 02 08 2006 17 08 2006 There are specific variations of triangles that can occur namely ascending and descending triangles An ascending triangle has a horizontal resistance line and a descending triangle has a horizontal support line iT 4 asutochartist com Ascending Triangle 15 000 14 500 14 000 13 500 13 000 12 500 12 000 30 06 2006 18 07 2006 02 08 2006 17 08 2006 Descending Triangle 30 06 2006 17 07 2006 01 08 2005 16 08 2006 An ascending triangle usually occurs as a continuation of a bullish trend while a descending triangle usually occurs as a continuation of a bearish trend 2 2 Channels and Rectangles Rectangles Channels A channel is formed between parallel support and resistance lines This pattern usually indicates a relatively strong trend up or down with the price staying within the lines until breakout A breakout from a channel indicates either a reversal in the trend or a change in the slope of the current trend phe 4 curochoertisr com Channel Up 1 9025 1 9000 1 8975 1 8950 1 9925 1 8900 1 8875 2B 8 12 00 26 8 12 00 29 8 12 00 29 8 12 00 Channel Down 247
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