Traders should avoid trading bear pennants. Decades of testing on over 1,600 trades show bearish pennants have a success rate of only 54% and a low price decrease of 6%. The evidence is clear, pattern trading bear pennants is not worthwhile.
Our ultimate guide to technical analysis will fast-track your knowledge with our 14 videos covering charts, trends, indicators, patterns, and tools.
Twenty years of trading research show the descending triangle pattern has an 87% success rate in bull markets and an average profit potential of +38%. The descending triangle pattern is popular because it is reliable, accurate, and generates a good average profit.
According to multi-year testing, the rising wedge pattern has a solid 81% success rate in bull markets with an average potential profit of +38%. The ascending wedge is a reliable, accurate pattern, and if used correctly, gives you an edge in trading.
The inverse head and shoulders pattern is one of the most accurate technical analysis reversal patterns, with a reliability of 89%. It occurs when the price hits new lows on three separate occasions, with two lows forming the shoulders and the central trough forming the head.
The head and shoulders pattern is one of the most accurate technical analysis reversal patterns, with a reliability of 81%. A head and shoulders top occurs when the price peaks on three separate occasions, with two peaks forming the "shoulders" and the central peak forming the head.
Decades of research reveal the double bottom pattern has an 88% success rate in bull markets and an average profit potential of +50%. The double-bottom chart pattern is one of the most reliable and accurate chart indicators for traders.
Volume profile technical analysis indicators provide a uniquely detailed overview of volume distribution across price levels, offering traders insights into market structure and supply and demand zones.
Traders must be cautious when trading bull pennants. Published research reveals a low success rate of 54% and a meager price increase of 7%. This implies pattern trading bullish pennants is as good as coin-flipping with unfavorable odds.
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When selecting a technical analysis course, consider your preference for industry certification, certified instructors, or both. Also, think about the course duration and depth of content that best suits your needs. Lastly, check the training provider's returns policy for peace of mind.
A falling wedge is a technical analysis pattern with a predictive accuracy of 74%. The pattern can break out up or down but is primarily considered bullish, rising 68% of the time.
In technical analysis, the Aroon indicator identifies trend reversals and trend strength. This oscillating indicator has two parts: the "Aroon Up" line measures uptrend strength, and the "Aroon Down" line for downtrend strength.
Decades of trading research show the triple-bottom pattern has an 87% success rate in bull markets and an average profit potential of +45%. The triple bottom chart pattern is popular because it is reliable and accurate and generates a good average profit for traders.
All stock market trends can be described by using the following definitions. Market timeframes are short-term-medium-term, and long-term. Market direction is described using uptrend, downtrend, or consolidation.
Drawing trendlines on stock charts is a powerful way to assess the direction of the market. Trendlines help you understand the trend direction and timeframe to set expectations for future market moves.
Limit, market, and stop limit orders, help ensure you get the best possible stock purchase price. Stop limit, stop market, and trailing stop orders help sell your stocks for profit or limit your risk.
Day and swing trading uses technical chart analysis to trade short-term price moves, whereas growth and value investing use long-term fundamental financial analysis. The tools and strategies used for these types of trading are completely different.
According to my research, during a bull market, investors should hold a stock for between 50 and 300 days to allow profits to develop optimally. The ideal hold time for swing traders is 45 days for an average profit of 30%.
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