chartbetrachtung

Chartbetrachtung, also known as chart interpretation or chart analysis, refers to the systematic examination of financial charts to understand market behavior and make informed trading decisions. The practice has its roots in technical analysis, which emerged in the early 20th century when traders began to look for patterns and signals in price and volume data. While fundamental analysis focuses on economic fundamentals, chartbetrachtung relies on the premise that historical price movements reflect market psychology and are therefore predictive of future price behavior.

Typical methods of chartbetrachtung include the identification of support and resistance levels, trendlines, chart patterns such as head and shoulders, double tops and bottoms, and candlestick formations. Technical indicators such as moving averages, the relative strength index (RSI), moving average convergence divergence (MACD), and stochastic oscillators are also commonly applied to provide quantitative signals. Many practitioners combine multiple indicators and rule sets to reduce false positives, a process sometimes called indicator filtering.

In practice, chartbetrachtung is used by day traders, swing traders, and portfolio managers to time entries and exits, gauge market sentiment, and assess risk. It is not a standalone strategy; rather, it is integrated with risk management rules and, increasingly, with machine learning models that detect patterns and refine predictive accuracy. Critics argue that relying too heavily on historical data can lead to overfitting, while supporters maintain that market forces often repeat predictable cycles. Overall, chartbetrachtung remains a central discipline within technical trading, offering a structured framework for interpreting complex market data.