12 Proven Ways to Trade Stock Chart Indicators Profitably
Professional market analysts build effective trading strategies using techniques such as indicator divergences, multi-time frame analysis, indicator combinations, and rigorous backtesting.
KST Indicator Best Settings & Strategy Tested on 2746 Trades
My research on 2,746 test trades spanning 10 years confirms that using the KST indicator's default settings on daily and weekly charts provides profitable and reliable signals for traders.
KDJ Indicator Explained: Best Settings & Strategy Tested
The KDJ is a stochastic oscillating technical analysis indicator that helps traders predict price reversals. According to our research, the KDJ has a 63% success rate if configured correctly.
Top 4 Best Momentum Indicators Explained & Tested
In technical analysis, momentum indicators help traders identify the strength and direction of a stock's price. We explain and test three popular momentum indicators for reliability.
11 Accurate Day Trading Indicators Tested & 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.
A Market Analyst’s Guide to Stock Volume Indicator Trading
Stock volume measures the number of shares traded and indicates market strength. Rising markets with increasing volume are viewed as bullish, and falling prices on higher volume are bearish.
Donchian Channels Indicator Explained & Profitability Tested
The Donchian Channels indicator in technical analysis helps traders understand market trends and potential price breakouts. It consists of three lines formed by taking the highest and lowest low of a predetermined number of periods, typically 20.
6 Researched & Data Driven Tips for Money Flow Index Trading
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.
Money Flow Index Indicator Best Settings & Reliability Tested
The Money Flow Index (14), on a daily chart, outperformed the S&P 500 stocks over 26 years. Its total return was 1,690%, compared to a buy-and-hold strategy profit of 881%.
How to Trade the McClellan Oscillator Effectively
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.
Elliott Wave Theory: Usage, Rules & Reliability Tested
Elliott Wave Theory is a scientifically unproven technical analysis indicator used to attempt to predict price movements in financial markets. I highly recommend avoiding this indicator.
Weighted Moving Average (WMA) Explained & Reliability Tested
Our research reveals the WMA underperforms other moving averages with only a 7% win rate on a standard OHLC chart. However, using it on Heikin Ashi charts produces excellent results.
How to Trade Pivot Points in Stocks Based on 66,480 Trades
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.
OBV Indicator: Best Settings & Trading Strategy Explained
On-balance volume (OBV) is a cumulative indicator in technical analysis designed to show the volume flow relative to a security's price movements. The OBV reflects the collective buying and selling pressure crystallized through the volume trend.
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.
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.
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.