Home Stock Trading Technical Analysis

Technical Analysis

Technical analysis is the art and science of interpreting the supply and demand in the market for an asset, whether a stock, commodity or currency. Technical analysis helps you understand stock trends, charts, direction, and risk-reward.

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.

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.

Do Tweezer Top & Bottom Candle Patterns Work? I Test It!

Based on our testing of 1,892 trades, the tweezer top and bottom patterns are highly unreliable and unprofitable. These patterns exhibit a reward-to-risk ratio of only 1.07, with 50% of trades resulting in losses. Relying on tweezers as a trading strategy yields poor results.

Wyckoff Method Explained: Accumulation & Distribution Trading

The Wyckoff Method is built upon three cardinal laws that govern the financial markets: the Law of Supply and Demand, the Law of Cause and Effect, and the Law of Effort versus Result.

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.

10 Best Candlestick Patterns Proven Successful & Reliable

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.

5 Best Candlestick & Chart Pattern Recognition Software 2024

Our 20-point test reveals the best stock chart candlestick pattern recognition software are TrendSpider, TradingView, and Finviz.

10 Best Day Trading Indicators Proven with Data!

Our research on 10,400 years of exchange data shows the best day trading indicators are the Price Rate of Change, VWAP, Weighted Moving Average, Hull Moving Average, Simple Moving Average, and RSI.

12 Accurate Chart Patterns Proven Profitable & Reliable

Research shows the most reliable chart patterns are the Head and Shoulders, with an 89% success rate, the Double Bottom (88%), and the Triple Bottom and Descending Triangle (87%). The Rectangle Top is the most profitable, with a 51% average win.

10 Best Free TradingView Indicators & How to Trade Them!

Our testing shows the best TradingView indicators for advanced analysis are Volume Profile HD, VWAP, Supertrend, ATR, Relative Volatility, and RSI. TradingView's candlestick and chart pattern recognition also improve trading outcomes. 

Master Technical Analysis: A 14-Video Ultimate Guide

Our ultimate guide to technical analysis will fast-track your knowledge with our 14 videos covering charts, trends, indicators, patterns, and tools.

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.

How to Trade the McClellan Oscillator: Advanced Strategy

The McClellan Oscillator is a technical analysis tool designed to assess the market breadth of the New York Stock Exchange (NYSE). It is renowned for its effectiveness in revealing the underlying strength or weakness of the market by comparing the number of advancing to declining stocks.

Do Pivot Points in Stocks Work? We Test 66,480 Trades To...

Traders utilize pivot point indicators to predict when stock prices will reverse direction. But does it work? I tested 66,480 trades on 210 years of data, and the results are surprising.

3,735 Bullish Engulfing Candle Trades Test its Reliability

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%.

Hull Moving Average Trading Tested with 960 Years of Data

The Hull Moving Average (HMA) is a highly responsive technical analysis indicator designed to reduce lag. Our research reveals it outperforms other moving averages.

9,894 Trades Test a Spinning Top Candle Pattern’s Reliability

Our original research found that the Spinning Top candle is a bullish pattern, 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.

6 Tips for Trading the Money Flow Index (MFI) Indicator

To optimally trade using the MFI indicator, traders should look for overbought, oversold, and divergence conditions as key signals. For the best results, consider backtesting your strategy.

Cup and Handle Pattern: Trading a 95% Reliable Chart Pattern

Twenty years of trading research show the cup and handle pattern has a 95% success rate in bull markets and returns an average profit of +54%. The cup and handle chart pattern is reliable and accurate but can be difficult to identify.

Money Flow Index (MFI) Explained: Best Settings & Reliability Tested

The Money Flow Index (MFI) is a momentum indicator in technical analysis that measures the in and outflows of money into a stock. It oscillates between 0 to 100 and is used to identify price reversals, market tops, and bottoms.

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.

Our LST Strategy Beat the Stock Market’s S&P 500 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%.