Are Bullish Harami Candles Profitable? We Test It?
Our research shows Bullish Harami and Bullish Harami Cross are profitable patterns. Based on 1,112 years of data, the bullish Harami has an average profit per trade of 0.5% and the Harami Cross 0.58%.
RSI Indicator Explained: Best Settings & Strategy Tested
The Relative Strength Index (RSI) is an oscillating momentum indicator that measures the speed and change of stock price movements. RSI uses a scale from 0 to 100 to indicate overbought or oversold conditions.
Does Ichimoku Cloud Work? Success Rates & Settings Tested
Ichimoku Cloud, or "Ichimoku Kinko Hyo", is a moving average based chart indicator that visualizes the market's direction, momentum, and support/resistance levels.
ADX Indicator Best Settings & Trading Strategy Tested
According to our in-depth testing, an ADX(DMI + 14) setting crossing above 20 is a profitable buy signal, and crossing below 20 is a reliable sell signal. These settings resulted in an ADX 28% outperformance versus the S&P 500 stocks.
We Test Bullish & Bearish Marubozu Candles for Reliability
Our research shows Bearish Marubozu candles are among the most profitable patterns. Based on 568 years of data, it has a 56.1% success rate and an average win of 4.1%. Conversely, the Bullish Marubozu is one of the worst.
Dragonfly Doji Explained: Is it Reliable? I Test It!
The Dragonfly Doji is a candlestick chart pattern that indicates an equilibrium between buyers and sellers after a day of trading volatility. Our 1,703 test trades prove it can be profitable under the right circumstances, but the margins are thin.
We Test the Inverted Hammer Candle Pattern! Is It Worth It?
Our research shows the Inverted Hammer is the most accurate and profitable candlestick pattern. Used as a bullish signal, it has a 60% success rate and an average win of 4.2%, based on 588 years of data.
Hammer Candlesticks Patterns Explained & Reliability Tested
According to 2,219 tested trades, a Hammer is extremely unreliable and unprofitable. It has a low % accuracy rate of 52.1%, resulting in a razor-thin 0.18% profit per trade.
Mean Reversion Trading Strategy Explained with Examples
The mean reversion trading strategy suggests prices and returns eventually move back toward the mean or average. Reliable indicators like Stochastics, RSI, and Bollinger bands are based on mean reversion to identify overbought and oversold conditions.
Aroon Indicator Explained: Best Settings & Strategy Tested
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.
Trading a Doji Candle Explained: I Backtest It For Reliability!
A Doji candlestick chart pattern indicates a battle between buyers and sellers, ending in equilibrium. The Doji marks a potential trend reversal. Is the Doji pattern profitable or accurate? Our evidence suggests its profitability is marginal.
Reading & Trading Volume Profile Indicators Like a Pro
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.
Sell In May And Go Away! Is It True? Debunking the...
Our 60 years of research shows that the stock market maxim "Sell in May and go away" is misleading and detrimental to your investing performance. The 60-year average return of June, July, and August outweigh any losses incurred during bad years.
Bearish Harami Pattern: 5,624 Trades Tested for Reliability!
Our research shows Bearish Harami and Bearish Harami Cross are profitable patterns. Based on 1,136 years of data, the Bullish Harami has an average profit per trade of 0.48% and the Harami Cross 0.57%.
Gravestone Doji Explained & Reliability Tested!
A Gravestone Doji candle indicates a battle between buyers and sellers and is considered bearish. Our 1,553 test trades prove it is the third most profitable candle pattern. But it does not work as most traders believe.
How to Read Candlestick Charts Using 5 Reliable Patterns
You can read candlestick charts using pattern recognition software to identify five reliable patterns, the Inverted Hammer, Bearish Marubozu, Gravestone Doji, Bearish Engulfing, and Bullish Harami Cross.
How to Trade the DMI Indicator Profitably: 9,764 Trades Tested
Our testing, based on 9,764 trades over 25 years, proves the DMI indicator is profitable and reliable, outperforming the S&P 500 index.
Simple Moving Average Trading Settings & Strategy Tested
The simple moving average (SMA) technical analysis indicator helps identify stock price trends. It calculates an arithmetic average of prices, offering a smooth line that eliminates short-term price volatility.
ATR Indicator: Settings, Reliability & Usage Tested
The average true range (ATR) is a nondirectional momentum indicator that measures price volatility. Our 1,205 test trades showed a solid 1.77 reward-to-risk ratio with an average 8.5% winning trade.
Fibonacci Retracement Trading Tested! Does it Work?
In technical analysis, Fibonacci retracement is used by traders to predict levels of support and resistance by drawing horizontal lines according to the Fibonacci sequence. But Does It Work?
Our Best Training & Strategies
Liberated Stock Trader Pro: Learn Stock Market Investing
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).
ETF Investing Strategy: MOSES Improves Performance & Lowers Risk
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.
LiberatedStockTrader’s Strategy Beat the Market By 102%
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%.
TradingView Review 2024: Tested by LiberatedStockTrader
LiberatedStockTrader's review testing awards TradingView 4.8 stars due to excellent stock chart analysis, pattern recognition, screening, and backtesting. TradingView is our top recommendation for US and international traders.
Stock Rover Review 2024: Tested by LiberatedStockTrader
LiberatedStockTrader's review testing awards Stock Rover 4.7 stars. Its advanced screening, research, and portfolio tools are ideal for US value, income, and growth investors. With 650 financial metrics on 10,000 stocks and 44,000 ETFs, we rate Stock Rover the number one stock screener.
Trade Ideas Review 2024: AI Tested by LiberatedStockTrader
Our in-depth testing shows Trade Ideas is the ultimate black box AI-powered day trading signal platform with built-in automated bot trading. Three automated Holly AI systems pinpoint trading signals for day traders.
TrendSpider Review: Big 2024 Updates! Is It Now The Best?
Our TrendSpider testing finds it is ideal for US traders wanting AI-automated charting, pattern recognition, and backtesting of stocks, indices, futures, and currencies.
Benzinga Pro Real-time News Tested by LiberatedStockTrader
Our testing shows Benzinga Pro is best for US traders who want a high-speed, actionable, real-time news feed at 1/10th of the price of a Bloomberg terminal. I recommended Benzinga Pro for active day traders and investors who trade news events.
MetaStock Review 2024: Tested by LiberatedStockTrader
Our MetaStock review and test reveal an excellent platform for traders, with 300+ charts and indicators for stocks, ETFs, bonds & forex globally. Metastock has solid backtesting and forecasting, and Refinitiv/Xenith provides powerful real-time news and screening.