Chartists

Chartists, or technical analysts, study financial market price movements and volumes to forecast future prices. Rather than focusing on a company’s fundamentals, they examine price action on charts to identify trends, support and resistance levels, and patterns that may signal buying or selling opportunities.

Chartists use a variety of chart types—line, bar, and candlestick—and analytical tools such as trendlines, moving averages, and momentum indicators (RSI, MACD). They look for chart patterns (head and shoulders, triangles, flags, double tops and bottoms) and for changes in volume or breadth to confirm moves. Many practitioners also employ additional tools like Bollinger bands or Ichimoku components as part of a broader toolkit.

Charting emerged as a systematic practice in the late 19th and early 20th centuries. Early contributors include Charles Dow and Richard Wyckoff, who linked price action with market structure and volume. Over time, technical analysis expanded through books, education, and practitioner networks, shaping modern chartist methods used by traders and asset managers worldwide.

Critics argue that chart patterns can be subjective, that patterns may reflect past data rather than future developments, and that markets are often efficient and unpredictable. Proponents contend that price reflects all available information and that recurring behavioral patterns can be exploited. In practice, many market participants combine chart-based insights with fundamental analysis and risk management, and charting tools are widely available across platforms and asset classes, including stocks, commodities, and currencies.