Home Technical Analysis Chart Indicators: Analysed & Tested

Chart Indicators: Analysed & Tested

Chart indicators are tools traders use to predict the future direction of a stock’s price more accurately. They are used to analyze historical data and trends, such as price, volume, and momentum, so traders can decide which stocks to buy or sell.

Our articles provide a unique analysis of the reliability, success rates, and how to trade the most important stock chart indicators.

Chart indicators can be used to identify entry and exit points in the markets, as well as to measure potential rewards versus risks. With chart indicators, traders can better assess when to enter or exit a position more confidently.

12 Ways Pros Use Trading Indicators: Proven by Data

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

10 Best Indicators for Day Trading: Proven by Data!

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.

Are Keltner Channels Worth It? 1800 Years of Data Reveals All.

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.

10 Best Free TradingView Indicators & How To Use Them

The best TradingView indicators are Volume Profile HD, VWAP, Technical Ratings, MOSES, Supertrend, ATR, and automated chart pattern recognition.

Stock Volume: How to Use Volume in Charts to Improve Trading

Stock volume is the total number of stocks traded during a specific time frame. However, volume also indicates changes in a stock's trend direction and offers valuable insights into the quality of the trend.

Advance/Decline Line: How Market Analysts Use It

The Advance-Decline line market breadth indicator shows you if the broad market is moving in step with an index. If not, this is a price divergence opportunity, and you should prepare for a trend direction change.

Fibonacci Retracement Trading: Tested & Proven Unreliable!

Fibonacci sequences and retracement are popular trading indicators among amateur investors, but our backtested research reveals it has a 63% failure rate. Our tests and 11 academic research papers demonstrate why traders and investors should avoid it.

Commodity Channel Index: 20-Year Test Proves Highly Profitable

The Commodity Channel Index (CCI) is not well known, but it is an ideal tool for traders seeking reliable technical indicators to make sound investment decisions. Having withstood our rigorous testing, we confirm it provides reliable buy and sell signals that can produce market outperformance.

Bollinger Bands: Strategies Tested & Best Settings Explained

Bollinger Bands are a popular chart indicator for beginner investors, but do they provide traders with valuable buying and selling signals? Our research suggests Bollinger Bands are not a reliable indicator if traded with the default settings.

5 Best Moving Averages & How to Trade Them Like a...

The 5 best moving averages for traders are the simple, exponential, weighted, exponential weighted, and Hull moving averages. Understanding how to interpret moving averages is a key skill for any trader looking for improved performance.

200-Day Moving Average Explained: I Test if its Worth It!

The 200-day Moving Average is a popular long-term chart indicator used to assess a stock's trend. An asset is bullish if above the moving average and bearish if below. It is calculated by averaging a security's closing prices over the last 200. But is it profitable? We find out.

Rate of Change Indicator: ROC Testing Shows a 66% Success Rate

Backtesting the price rate of change indicator on 30 Dow Jones Industrial Average stocks over 20 years resulted in an impressive 66% win rate outperforming a buy-and-hold strategy. The ROC indicator is a good choice for traders.

Money Flow Index: Proven Reliable & Accurate Over 26 Years!

I tested the reliability of the Money Flow Index across the DJ30 and S&P 500, producing over 13,396 years of data. The Money Flow Index is a very profitable indicator, but you need to know how it works, how to trade it, and the optimal settings.

Is the Aroon Indicator Reliable? I Test 13,360 Years of Data!

I backtested the Aroon indicator across the DJ30 stocks over 360 years, plus a 26-year S&P 500 test, equaling over 13,360 years of testing data. Not all Aroon configurations work, but I discovered the most profitable settings.

Stochastic Oscillator: 399 Years Of Test Data Reveals Surprises

Backtested Stochastic Oscillator research on 1, 5, and 60-minute and daily charts across the DJ30 stocks over 12 years, equaling over 399 years of testing data, reveals surprises. On standard charts, the Stochastic Oscillator is not profitable in all timeframes.

Ichimoku Cloud: 600 Years of Data Says Avoid this Indicator

Backtesting the Ichimoku Cloud strategy on the DJ-30 Index stocks over 20 years resulted in 600 years of testing. The results are a dismal 10% win rate underperforming a buy-and-hold strategy 90% of the time. The Ichimoku indicator is a bad choice for traders.

Exponential Moving Average: Mythbusting with 960 Years of Data!

The exponential moving average (EMA) is a popular chart indicator considered to be better than the simple moving average. But according to our testing, it performs much worse. I advise against using the EMA as a trading tool as it is inaccurate and can lead to traders losing money.

Simple Moving Average: 960-Year Test Results

The simple moving average is a popular, commonly used chart indicator. The SMA is typically the first indicator beginner traders learn and use, but our testing shows it is an extremely poor trading tool and should be avoided.

Hull Moving Average: Indicator Performance Test

The Hull moving average is a lesser-known chart indicator, and our testing reveals it outperforms other moving averages. But with only a 17% win rate, using the Hull moving average for trading is not advised due to its poor performance in consolidating markets.

Is the KDJ Indicator Worth It? I Backtest KDJ for 600...

The KDJ indicator can be up to 63% successful if configured correctly. If KDJ is set up poorly, it can cause significant losses and a poor reliability of 5%. Our KDJ testing shows how to use and understand the KDJ indicator.

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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 Strategy Beat the Stock Market’s S&P 500 By 102% In...

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 2023: Free vs Pro – Is it Worth it?

Our review testing rates TradingView 4.8/5 stars due to its impressive stock chart analysis, automated pattern recognition, screening, backtesting, live trading, and 19 million active users. TradingView is our recommendation for US and international traders.

Stock Rover Review 2023: Is It The Best Stock Screener?

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.

Trade Ideas Review 2023: Scanning & Holly AI Bot Tested

Our Trade Ideas review uncovers an excellent stock scanner, an AI-powered trading signal platform with 30 channels of trading ideas and auto-trading. Three automated Holly AI systems pinpoint trading signals for day traders. Trade Ideas promises and delivers the nirvana of market-beating returns.

TrendSpider Review 2023: We Test If Its The Best?

Trendspider uses AI to plot trendlines, chart patterns, Fibonacci, and even analyzes stocks for you. TrendSpider is unique, reliable, and innovative, but is it the best?

Benzinga Pro Review 2023: Why Smart Traders Love It?

This Benzinga Pro review reveals it is best for traders who want a high-speed actionable real-time news feed at 1/10th of the price of a Bloomberg terminal. Benzinga Pro includes charts, financials, screening, options mentoring, and a powerful calendar suite to get a trading edge.

MetaStock Review 2023: Charting, Backtesting & Xenith Tested

This MetaStock review and test reveal an excellent technical analysis charting platform for traders, with 300+ charts and indicators for stocks, ETFs, bonds & forex globally. Metastock has innovative backtesting and forecasting, and Refinitiv/Xenith provides powerful real-time news and screening.