Technical Analysis

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.

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.

Professional market analysts build trading strategies using trading indicator techniques like divergences, multi-time frame analysis, indicator combinations, and rigorous backtesting.

The inverse cup and handle chart pattern is a technical analysis trading strategy. Traders use it to identify a breakdown in asset prices, aiming to profit from short-selling a sharp price decline. The inverse cup and handle chart pattern is considered reliable based on 556+ trades, with an 82% success rate in bull markets.

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.

To read candlesticks, you need to interpret how their body and wick length translates into the psychology of traders. Knowing which candles are proven reliable with data will also help.

Research shows the most reliable and accurate bullish patterns are the Cup and Handle, with a 95% bullish success rate, the Head & Shoulders (89%), Double Bottom (88%), and the Triple Bottom (87%). The most profitable chart pattern is the Bullish Rectangle Top, with a 51% average profit.

Decades of research prove the most profitable bearish chart patterns are the Inverted Cup and Handle with an average -17% price decrease, Rectangle Top (-16%), Head and Shoulders (-16%), and the Descending Triangle (-15%).

Be careful when trading bearish flags. According to published research, the bear flag pattern has a low success rate of 45%. This means you are flipping a coin when trading this pattern, as the odds are not in your favor. The high-tight bear flag is the only flag pattern you should trade.

Renko charts filter out unnecessary price fluctuations to provide a clear stock price trend that traders can use in their investing strategies. Renko charts are gaining in popularity due to their ability to filter out market noise and provide a clearer picture of the price action.

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.

Published research shows best stock chart patterns are the inverse head and shoulders, double bottom, triple bottom, and descending triangle. Each has a proven success rate of over 85%, with an average gain of 43%.

Our research found that the Spinning Top candle is bullish, with a 55.9% success rate and a 3.7% average winning trade. Trading with a Spinning Top yields an average profit of 0.49%, ranking it the 10th best candle to trade.

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 candle chart 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.

Heikin Ashi candle charts are better than candlesticks for maximizing returns in a professional trading strategy. Backtesting 360 years of data across 30 major stocks shows that Heikin Ashi chart strategies outperform 60% of equities vs. a buy-and-hold strategy.

Our research shows the Bullish Engulfing candle is not as bullish as most traders believe. Based on 568 years of data, it has a 55% success rate and an average win of 3.5%.

Research shows the Bearish Engulfing candle is an accurate and profitable pattern. Based on 568 years of data, it has a 57% success rate and an average win of 3.7%.

After testing three strategies across 1800 years of data, we confirm Keltner Channels are generally a losing trading strategy. Keltner Channels use simple and exponential moving averages, which we have already proven to be poor chart indicators.

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.