Research shows the most reliable and accurate bullish patterns are the Cup and Handle, with a 95% bullish success rate, Head & Shoulders (89%), Double Bottom (88%), and Triple Bottom (87%). The most profitable chart pattern is the Bullish Rectangle Top, with a 51% average profit.
Research shows the most reliable and profitable chart patterns are the Head & Shoulders, with an 89% success rate, the Double Bottom (88%), and the Triple Bottom and Descending Triangle (87%). The most profitable chart pattern is the Rectangle Top, with a 51% average profit.
Based on 568 years of data, our research shows the Shooting Star candle is bullish, not bearish, as most traders believe. It has a 57.1% upside success rate and an average winning trade of 3.6%. Each trade made using a shooting star nets an average of 0.56% profit.
Our research shows the most reliable and predictive candlestick patterns are the Inverted Hammer, with a 60% success rate, Bearish Marubozu (56.1%), Gravestone Doji (57%), and Bearish Engulfing (57%). The most profitable candle pattern is the Inverted Hammer, with a 1.12% profit per trade.
Swing Trading and Day Trading differ in the timeframe, strategy, tools, and leverage. Day traders trade intraday using leverage; swing traders hold positions for days or weeks. Swing traders use real-time news, patterns, and indicators to make decisions, whereas day traders typically look for volatility to enable price scalping.
With over 10,400 years of backtested exchange data, our original research reveals the best indicators for day trading are the Price Rate of Change, VWAP, Weighted Moving Average, Hull Moving Average, Simple Moving Average, and Relative Strength Index.
The best time to buy stocks is in October, and the best time to sell stocks is in July, according to our research using 53 years of stock market data.
To read stock charts you need to use stock charting software, select your chart type, configure your timeframe, determine price direction using trendlines and use indicators to estimate future prices.
The terms "stock price" and "share price" are used interchangeably in finance. However, pricing equities involves a wealth of additional terms, including the open, high, low, close, ask, bid, and spread.
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.
Point and Figure (P&F) charts are a unique form of technical analysis that focuses solely on price action, disregarding time and volume. They utilize 'Xs and 'Os to depict price movements, with 'X' representing an increase and 'O' a decrease.
Investing is a long-term strategy for wealth accumulation through buying and holding assets. Conversely, trading involves frequent buying and selling of securities to exploit market fluctuations for quick profits.
Testing reveals the best stock chart candlestick pattern recognition software is TrendSpider, TradingView, MetaStock, and Finviz. Tickeron's AI can detect traditional stock chart patterns.
Our testing shows a high short interest float greater than 20% and a short interest ratio (days to cover) over 19 days is the key to finding potentially explosive short squeeze stocks.
Short interest is the total number of outstanding shares sold short. Our data suggests short-sell traders should look for a high short interest float over 6% and a short interest ratio (coverage) greater than 19 days to find highly profitable short squeeze scenarios.
Short selling is an investment strategy that involves selling securities borrowed from a broker. The idea is to sell the borrowed shares and then buy them back at a lower price, profiting from the difference between the two prices.
Using stock leverage, which involves trading stocks with a margin account, leveraged ETFs, or stock options, can be a double-edged sword. It has the potential to magnify both your gains and losses.
A one-point move in a stock price equals a one-dollar change. When someone says a stock is down two points, its price has declined by two dollars. Points in a stock index are similar to points in a stock, but instead of referring to the actual stock price, they refer to an index's performance.
To average up and down in stocks, buy more shares at a lower price when the stock price drops (averaging down) or fewer shares at higher prices when it rises (averaging up). This technique capitalizes on market movements with limited risk by lowering the cost basis and potentially increasing returns over time.
Our Best Training & Strategies
Learn stock market investing with the complete online stock trading course by Barry D. Moore, a certified financial analyst from the International Federation of Technical Analysts (IFTA).
The MOSES ETF investing strategy is a powerful suite of indicators meticulously backtested over 100 years. Designed to empower you to outperform the market, it equips you with the tools to navigate major stock market crashes and unlock greater investing performance.
Decades of research and testing unveiled the Liberated Stock Trader Beat the Market System. Our 9-year, backtested, and proven strategy targets 35 financially healthy high-growth stocks, producing a track record of beating the S&P 500 by 102%.
Our detailed testing rates TradingView 4.8/5 stars due to its robust stock chart analysis, pattern recognition, screening, and backtesting. TradingView is our top recommendation for US and international traders.
Our Stock Rover review reveals an excellent stock screening, research, and portfolio tool for long-term US value, income, and growth investors. Easy to use yet incredibly powerful, Stock Rover is the best stock screener available for US investors.
Trendspider uses AI to recognize trendlines, chart patterns, and Fibonacci, and it even analyzes stocks for traders. TrendSpider is unique, reliable, and innovative.
Our Benzinga Pro review reveals trustworthy, dependable, real-time news, alerts, insider block trade, and options activity signals for US stock traders. Benzinga Pro is highly configurable, responsive, and easy to use while beating its competitors on price.
Our MetaStock review testing reveals powerful charting, system backtesting, forecasting, and Xenith real-time financial news for traders. MetaStock has unbeatable charts, indicators, and drawing tools, but it needs to be a little easier to use.