Professional market analysts build trading strategies using trading indicator techniques like divergences, multi-time frame analysis, indicator combinations, and rigorous backtesting.
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.
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.
The best TradingView indicators are Volume Profile HD, VWAP, Technical Ratings, MOSES, Supertrend, ATR, and automated chart pattern recognition.
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.
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.
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 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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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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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%.
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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.
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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.