I know that there are many chart pattern recognition software’s, I would like to know how reliable they are and what does the people that use it or had use it think. I’m not personally looking for any software I just would like to know just in case I try it on the future
wackypete2
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Hi Fran,
I use autochartist occasionally since my broker offers it for free(!!). Reliability in terms of finding the patterns...it works great. You can set the timeframes, pattern types, and fx pairs that you want. You should understand how patterns work before diving in and trading off them. Autochartist gives an indication of where price should go after a breakout, but remember the patterns themselves do not predict direction or targets. It give sound alerts to new patterns it finds. All in all I think it's a great tool for traders new to pattern trading or, like me, who don't stare at the screen all day but listen to the sounds. lol
geez, I sound like a commercial..so disclaimer: I am in NO WAY affiliated with this. I just use it because my broker offers it to me free of charge!.
Peter
I use autochartist occasionally since my broker offers it for free(!!). Reliability in terms of finding the patterns...it works great. You can set the timeframes, pattern types, and fx pairs that you want. You should understand how patterns work before diving in and trading off them. Autochartist gives an indication of where price should go after a breakout, but remember the patterns themselves do not predict direction or targets. It give sound alerts to new patterns it finds. All in all I think it's a great tool for traders new to pattern trading or, like me, who don't stare at the screen all day but listen to the sounds. lol
geez, I sound like a commercial..so disclaimer: I am in NO WAY affiliated with this. I just use it because my broker offers it to me free of charge!.
Peter
wackypete2
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Sounds like it really help, I do not trade forex, I trade equities. I have been told previously that autocharts is very good. I completely agree with what you say about the patterns themselves not predicting direction or targets, Dan Zanger a very famous trader says the same on an interview:
"Larry: How do you actually determine during the night and during the day what to buy and what to sell? Is this based on patterns?
Dan: I certainly use patterns and the look of a daily trading bar. A lot of stocks have good patterns, but then they don’t move. Many people have sent me pattern recognition soft ware that they have setup on various soft ware platforms such as TradeStation, or some other software. They run all these scans and here are all these patterns. They come up with all these patterns, but nothing moves. So you really have to find what moves and then find the patterns that they create. I have initially missed the first move of a stock, but I will track it for a month or two waiting for something to set up as opportunistic to buy either a breakout to the upside or a potential sell to the downside. I would say that 95% of my trades are long positions. 99% of my gains are in long positions and the 1% from shorts are for fun and games!”
I trade in a kind of similar way as you do in the sense that I do not stare all day at the computer. I screen at the end of the day and then I look at charts, let say that I look at 100 charts with autocharts basically what it would do is make my life simpler and I would have to look only at let say 50 charts is that correct?
"Larry: How do you actually determine during the night and during the day what to buy and what to sell? Is this based on patterns?
Dan: I certainly use patterns and the look of a daily trading bar. A lot of stocks have good patterns, but then they don’t move. Many people have sent me pattern recognition soft ware that they have setup on various soft ware platforms such as TradeStation, or some other software. They run all these scans and here are all these patterns. They come up with all these patterns, but nothing moves. So you really have to find what moves and then find the patterns that they create. I have initially missed the first move of a stock, but I will track it for a month or two waiting for something to set up as opportunistic to buy either a breakout to the upside or a potential sell to the downside. I would say that 95% of my trades are long positions. 99% of my gains are in long positions and the 1% from shorts are for fun and games!”
I trade in a kind of similar way as you do in the sense that I do not stare all day at the computer. I screen at the end of the day and then I look at charts, let say that I look at 100 charts with autocharts basically what it would do is make my life simpler and I would have to look only at let say 50 charts is that correct?
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intradaybill
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Some info in the other thread:
http://www.trade2win.com/boards/trading-software/107654-price-action-lab.html
http://www.trade2win.com/boards/trading-software/107654-price-action-lab.html