The world’s most advanced trade-spotter set for launch in South Africa

In August, online trading platform Sanlam iTrade will become the first South African platform to offer the world’s most advanced technical analysis tool, autochartist.com. By offering traders access to charting patterns, the software will provide an inval

According to head of Sanlam iTrade Gerhard Lampen, autochartist.com automatically recognises trading opportunities. “This technical analysis software identifies market patterns, such as head and shoulders, double tops, and so forth, on share charts. It also provides clear breakout signals for traders, indicating to them to either buy or sell stocks. It is very advanced, but also easy to use and understand.”

Leading international online trading websites such as FXStreet.com and FXDD already offer it to their clients. Lampen says traders can also use the software to determine which trading patterns and signals have proven most effective for traders recently. According to autochartist.com, the head and shoulders pattern has proven accurate more than 80 percent of the time on JSE stocks in the past six months. A head and shoulders top formation on a chart indicates that a share price is likely to fall. “As a result of this tool, you can have a reasonable amount of confidence that certain signals will work.”

The tool, available for all JSE-listed stocks, is applicable for both short-term and long-term investors. Short-term investors, who usually trade over a three-month horizon, will in particular be able to rely on the software. Analysis of stock movements on an intra-day basis is possible through the software.

Lampen says long-term investors should also make use of fundamental analysis when selecting the shares they wish to trade. However, autochartist.com can allow long-term investors to improve their market timing – thereby entering the market when the share is cheaper, and selling at an appropriate time. “It really opens up a world for people to start trading more accurately.”

He says with markets currently moving sideways, technical analysis is vital for traders to find opportunities in what may look like a lacklustre market. “The JSE has been stuck in a narrow band since January. This is not good for an investor. However, traders can still make money in this environment.”

Autochartist.com will be free for all iTrade clients during August – allowing them to test the software. Potential clients can register for free as iView clients on http://www.sanlamitrade.co.za/ and also use Autochartist for free in August. The tool will cost R80 per month for all other Sanlam iTrade clients after August. Frequent traders who trade more than four times a month will receive the software free of charge. Non-clients will also be able to make use of autochartist.com via iView, with the cost then amounting to R600 for six months.

Lampen says interested traders will be able to access training from ‘webinars’ on the Sanlam iTrade website. Two free information sessions have also been planned: on 6 August traders can attend a free session in Johannesburg. A second session is planned in Cape Town for 20 August. Booking is essential, and can be made by contacting noleenw@spi.sanlam.com.

http://www.sanlamitrade.co.za/ / @iSayiTrade