ac - user manual

8/9/2019 AC - User Manual

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TM

User Manual


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IntroductionThe Autochartist Interface

Analysis Toolbar (A) Pattern Display (B) Search Pane (C) Results Pane (Completed Patterns) (D) Results Pane (Emerging Patterns) (E) View Analysis (PowerStats) (F) Research; Education & Product Support Pane (G) Sound Switch (H)The Autochartist Interface (cont)Creating and Editing a Search

Basic Search

Advanced SearchTrend Change

Minimum Pattern Length Quality IndicatorsChart Pattern Quality IndicatorsFibonacci Quality IndicatorsPattern Types

Chart Patterns Fibonacci PatternsPattern Results

Emerging vs Complete ResultsSupport

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CONTENT


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Our proprietary technology allows us to monitor thousandsof nancial instruments 24 hours per day automaticallyuncovering trading opportunities as they occur.

With our pattern recognition engines continuously scanning

nancial markets such as Forex, Equities, Indices, andCommodity markets, traders are notied within minutes ofpattern formations.

We also offer PowerStats as a feature that gives tradersimportant statistical information about the instruments theytrade. It helps when setting stop-loss and take-prot levels,and provides a better assessment of risk and volatility.

Chart and Fibonacci Patterns are distributed to you in realtime via a web interface. This manual gives an overview ofhow to use the web interface.

INTRODUCTION

Autochartist is the world’smost advanced tool for theautomatic identification ofchart pattern formationssuch as Triangles, Wedges,

Head-and-Shouldersand Channels, as well asFibonacci Retracements,-Extensions, ABCD-,Gartley- and ButterflyPatterns.

Chapter 1


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THE AUTOCHARTISTINTERFACE

Chapter 2

The layout of the web interface consists of eight separate areas:

When you access Autochartist for the first time, the application willdisplay information that has been loaded by default.

Analysis Toolbar Pattern DisplaySearch PaneResults Pane (Completed Patterns)

A

BC

D

Results Pane (Emerging Patterns) View Analysis (PowerStats)Research; Education & Product Support PaneSound Switch

E

FG

H

A

B

C

D

E

F

G

H


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Analysis Toolbar

Click on the buttons on this toolbar toswitch between Chart Patterns view andFibonacci Patterns view.

When new patterns are found, this iconappears next to the search name, as well

as next to the analysis type (Chart patternsand/or Fibonacci patterns) on the toolbar.

When you click on the icon you areredirected to the relevant search results.

Alerts are cleared from this pane periodically

as automatic updates occur.

Pattern DisplayThe price graph and illustrated patterndisplayed in this pane represent the resultthat was selected in one of the ResultsPanes (D or E).

2. THE AUTOCHARTIST INTERFACE

A

The columns to the right of the price graphcontain additional information about thepattern, such as time found, pattern quality,pattern length and forecast region. Formore information see ’Results Pane’ D or E.

B


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Search Pane

The search pane contains your list ofdened searches. This list is populatedwith default searches when you login forthe rst time. Each search contains a set ofcriteria dened by you, and it species:

• where to look for patterns, bychoosing from a predened list ofgroupings (symbols are grouped, forexample, by exchange or instrumenttype).

• what types of patterns to look for.

• other criteria that can further filter results.

The information shown in the Results Panes(D and E) only pertains to the highlightedsearch.

An existing search can be edited byclicking on the pencil icon ( ), or deletedby clicking on this icon ( ). Please refer toChapter 3 “Creating and Editing a Search”for details on creating or editing a search.

Results Pane - Completed PatternsThis pane lists all completed patternsidentied for the selected search(highlighted in the Search Pane, C). A ChartPattern is dened as being completedwhen the price has broken through theidentied support or resistance level.

A Fibonacci Pattern has completed when

its nal turning point adheres to thepredened criteria for that pattern.

Results are ordered chronologically bydefault, but you can sort results by clickingon any of the column headers.

Results Pane - Emerging Patterns

This pane lists all emerging patternsidentied for the selected search(highlighted in the Search Pane, C). Apattern is dened as emerging if it hasnot yet fullled the criteria to be regardedas complete. These patterns provide auseful early indication of potential tradingopportunities.

Results are ordered chronologically bydefault, but you can also sort results byclicking on any of the column headers.

See Chapter 8: “Emerging vs Completeresults” for a more complete explanationof the difference between completed andemerging patterns.


C

D

E


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View Analysis (PowerStats)

The PowerStats toolkit provides traders with insight into the relativemovement of all instruments. This is very helpful when formulating newtrading plans, or rening and re-evaluating existing strategies. As animportant feature of Autochartist, together with Chart and FibonacciPatterns, PowerStats helps traders to set stop loss and take prot levels, aswell as helping to gure out risk and choosing the appropriate instrumentsto trade.

To access the View Analysis (PowerStats) feature click on the “View Analysis”Button. A new screen will open up:

PowerStats offers:

• Average PIP movement in specic time frames

• Likelihood for upside or downside momentum (based on history)

• Maximum expected price movements (statistical highs and lows)across various time frames

• Expected price movements over weekday and hourly time frames

Price RangeForecast Screen


Movementper Hour Screen

Movement per Day Screen

F


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Research; Education & Product Support Pane

This pane provides access to Research; Education and Product Supportdocumentation.

ResearchAccess our Daily and Weekly commentary which is produced by our in-house team of analysts and quoted in leading wires such as Reuters andDow Jones. Our articles cover Forex, Indices (including specic pieces onthe FTSE and ASX) and Commodities.

EducationWe suggest that traders view our 5 Introductory Videos and also readthrough our articles, as these contain a variety of topics that cover mostaspects of our service.

Product SupportHere end users are able to access the Autochartist User Manual and IntroGuide

Sound Switch

Here users are able to toggle the alert sound to on or off:

ON OFF


G

H

“Autochartist is an indispensable time saving component in our daily operations, simply amust have for any trader who is serious about getting an unbiased opinion of the markets.”LeMoil Howard www.autochartist.com


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Each new search is created specically, either for Chart Patterns or forFibonacci Patterns.

Users are able to use the basic “New Search” function or the “AdvancedSearch” function.

New Search

To create a new search, click on the “New Search” button in the SearchPane C (see above) under the relevant pattern heading. A separate windowwill pop up in which to dene your search.

CREATING AND EDITING A SEARCH

Chapter 3

A search is a set of criteria, defined by you, which is used to scan themarket for patterns.


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3. CREATING AND EDITING A SEARCH

Search TypeThis section of the “New Search” window allows users to choose a Group byclicking on the drop down list. This is a fundamental decision to make whencreating a new search - where to scan for patterns.

You may either choose a pre-dened group of symbols, or you can select acustom list of symbols for your search.

For groups, simply select the “Group” option from the radio button and

choose from the drop-down list of groups.

To search for specic symbols choose the “Symbol” option, add yourpreferred symbols, and select the relevant time granularities you would liketo view. Click “Add” after entering each symbol.

Search NameThe second part of the search window provides a text eld for you to enter aname for the search. It should be given a meaningful name, just as you wouldgive a descriptive le name to an important document when saving it. Thename of the search will be displayed under the relevant pattern heading inthe Search Pane (C).


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Advanced SearchThe “Advanced Search” function is located just below the Basic Search Area(see below).

To create an “Advanced Search” click on the Advanced Search link. Aftercompleting the same steps as in the basic “New Search” section, furtherrene your search by selecting from an existing list of criteria like Price Range,Direction, Trend Change, Minimum Pattern Length and several QualityIndicators. Each section is described below.



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Price RangeA minimum to maximum price range can be selected. This functionality ismainly useful for scanning equities and/or CFDs

DirectionSearch results can be ltered according to the direction of the expectedoutcome of price movement after the pattern is identied. Every pattern haseither a bullish or bearish outlook. If you are interested only in a particularmarket direction you can select it here by clicking the applicable radio button.

“Can’t wait to learn Autochartist!Jose Riviera www.autochartist.com


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Depending on the type of market stage (trending or sideways) you may bemore interested in either continuation or reversal patterns. Here you canlter these according to your preference by clicking on the applicable radiobutton.

Trend ChangeThe expected price movement after a Chart Pattern was found would eitherbe in the same direction as the Initial Trend, or in the opposite direction. Ifthe expected price movement after the pattern follows the same directionas the Initial Trend it is a known as a continuation pattern. If it goes in theopposite direction to the initial trend it is called a reversal pattern.

TREND CHANGE

Chapter 4


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4. TREND CHANGE

Minimum Pattern LengthPattern length species the number of candles (bars) of the price chart thatare contained in the pattern. For example, a pattern of length 30 found on 60minute data would mean that the pattern was formed over 30 hours.

Longer patterns tend to be of better quality, so you can choose to lter outshort patterns by setting the minimum pattern length using the slider.

Quality IndicatorsFive objective indicators measure Chart Pattern quality, and three measure

Fibonacci Pattern quality.


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4. TREND CHANGE

Quality indicators reect the visual appeal of the pattern. A high quality

pattern will naturally appear more attractive. The Overall Quality measureindicates average quality across all indicators.

Quality is expressed as a number ranging from 0 to 10, where 10 is the bestquality and 0 is the poorest. Use the sliders to set the required levels ofpattern quality for your search.

It is important to remember that the settings in this section determine theminimum requirements for quality. A lower threshold would allow more

patterns to pass the search criteria. If the requirements are set too high,your search may return very few results or none at all. By default all qualityrequirements are set to zero.

”By all standards auochartist software is marvelous and a must for every trader.”Eddie www.autochartist.com


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ClarityIndicates the level of “noise” in the pricegraph. If there are many spikes in the pricemovements the clarity will be low.

Initial TrendThe strength of the trend that precedes apattern is a very good measure of the visualquality of the pattern. A long, consistentInitial Trend will have a higher rating for thisindicator.

VolumeAn important indicator to measure theworth of a market move. If the marketshave made strong price moves either up ordown. The perceived strength of that movedepends on the Volume for that period.The higher the Volume during that pricemove the more signicant the move.

UniformityIf the points touching the support andresistance lines are more evenly spacedover time, the pattern will have a betterUniformity rating.

Breakout StrengthThe momentum with which the price breaksthrough support or resistance indicatesbreach of a previous psychological level.Stronger Breakout is a reinforcement of

the underlying theory, and signals a betterchance of reaching the Forecast Region.

CHART PATTERN QUALITYINDICATORS

Chapter 5


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FIBONACCI QUALITYINDICATORS

Chapter 6

ClarityIndicates the level of “noise” in the pricegraph. If there are many spikes in the pricemovements the Clarity will be low.

Time Symmetry

The degree to which time differencesbetween turning points follow the sameFibonacci ratios found in price levels.

Price SymmetryThe degree to which the identied ratiosmatch the theoretical Fibonacci ratios,within some margin of error. The smallerthe margin of error, the higher the PriceSymmetry.


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There are 16 types of Chart Patterns or sixtypes of Fibonacci Patterns that can beincluded in a search. Each pattern typeis listed in this section, together with acheckbox that can be ticked to include it aspart of the search.

In addition, you can click on an informationicon that details the characteristics ofthe pattern, when it forms and what itsuggests.

PATTERN TYPES

Fibonacci Patterns

Chapter 7

Chart Patterns


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PATTERN RESULTS

Chapter 8

The Pattern Display Pane (B) in “TheAutochartist Interface” section) containsdetailed information on speciccharacteristics of the pattern. There arehelpful descriptions available by clicking on

the icon next to each item.

Once you click on the the descriptionbelow will appear:

SymbolThe name of the instrument on which thepattern was found.

IntervalTime interval of the data on which thepattern was found.

PatternDescriptive name of the type of patternidentied.

Pattern EndDate and time when the pattern wasidentied or when it reached its completion.

LengthThe number of candles / bars of the pricechart that are contained in the pattern.

DirectionForecast direction of price movement afterpattern completion.

Quality IndicatorsSee Chapter 4: “Quality Indicators”.

Forecast From / ToMaximum and minimum price levels in theForecast Range of a completed pattern.


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8. PATTERN RESULTS

Emerging vs Complete ResultsEmerging patterns provide you with early notication of potential tradingopportunities. They represent partially complete pattern formations that,once completed, would adhere to the underlying theory. Most emergingpatterns do not complete, however, this means that the price moved in sucha way that the graph no longer represents a valid pattern.

Emerging Chart Patterns are detected when the price is trading betweensupport and resistance levels, but has not yet broken out in the direction

anticipated by the pattern.

Emerging Chart Pattern


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If a new turning point forms between the support and resistance levels before

breaking out, the emerging pattern will no longer be valid.

In emerging Fibonacci Patterns, the price level of the nal turning point ofthe pattern has not been reached yet. This is because it is only a theoreticalpossibility when the pattern is recognized. If the price graph does not make aturning point at the same price as the theoretical turning point, the FibonacciPattern will no longer be valid.

8. PATTERN RESULTS

Emerging Fibonacci Pattern


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For further support or information please visit www.autochartist.com ore-mail [email protected]

SUPPORT

Chapter 9

“Autochartist is a indispensable time saving component in our daily operations. Whilewe conduct elliot wave analysis, design digital signal filters, custom indicators and expertadvisors for use in our investment portfolios. Autochartist steps right in to provide a keyelement: third party conformation. It’s one thing to find the next best investment idea;however, the best ideas in any market come about with perfect timing and making sure thatyou are not on an island by yourself when it’s time to buy or sell. Autochartist is simply amust have for any trader who is serious about getting an unbiased opinion of the markets.”LeMoil Howard www.autochartist.com


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For further information on thisand other Autochartist products,visit our website at

www.autochartist.com

TM

DISCLAIMER: The Autochartist service includes chart pattern identication in respect of foreign currencies, commodities, equities and stocks.There are potential risks relating to investing and trading. You must be aware of such risks and familiarize yourself in regard to such risks andto seek independent advice relating thereto. You should not trade with money that you cannot afford to lose. The Autochartist service and itscontent should not be construed as a solicitation to invest and/or trade. You should seek independent advice in this regard. Past performanceis not indicative of future performance. No representation is being made that any results discussed within the service and its related mediacontent will be achieved. All opinions, news, research, analyses, prices or other information is provided as general market commentary andnot as investment advice. Autochartist, MDIO Software, their members, shareholders, employees, agents, representatives and resellers donot warrant the completeness, accuracy or timeliness of the information supplied, and they shall not be liable for any loss or damages,consequential or otherwise, which may arise from the use or reliance of the Autochartist service and its content.

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