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.

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.

ADX Indicator: Best Settings & Trading Strategy Explained

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.

Fibonacci Retracement Trading Explained: I Test If It Works

In technical analysis, Fibonacci retracement is used by traders to predict levels of support and resistance by drawing horizontal lines according to the Fibonacci sequence. But Does It Work?

Bollinger Bands Explained: Best Settings & Strategy Tested

Our reliability testing of Bollinger Bands on the S&P 500, using 13,360 years of data, suggests it is an unreliable, unprofitable indicator for traders. However, Bollinger Bands can be profitable, but you need to know how it works, how to trade it, and the optimal settings.

MACD Indicator Explained: Best Settings & Trading Strategy Tested

MACD is a trend-following momentum indicator used to identify price trends. We conducted 606,422 test trades to find the best settings and trading strategies.

Stock Volume Explained: Using 4 Top Volume Indicators

Stock volume, or trading volume, is the total number of shares traded during a specific period. Volume indicates buying and selling pressure and potential changes in a stock's trend direction and quality.

Advance/Decline (A/D) Line Explained: Master Market Breadth

The advance/decline (A/D) line indicator measures market breadth by identifying how many stocks participate in a market advance or decline. It is calculated by taking the number of advancing stocks minus the declining stocks.

Mastering Parabolic SAR Trading: Strategy & Best Settings Tested

The Parabolic Stop and Reverse (PSAR) technical indicator identifies asset price reversals. Relying on parabolic time/price systems it creates effective trailing stop-losses for trading signals.

12 Proven Methods to Master Stock Chart Indicators

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

Keltner Channel Explained: Best Settings & Strategy Tested

A Keltner Channel is a volatility-based trading indicator combining a simple moving average, exponential moving average, and average true range to plot a channel on a chart. It identifies trading signals using overbought and oversold conditions.

5 Best Moving Average Trading Strategies Explained & Tested on 43,770...

The five popular moving averages for traders are simple (SMA), exponential (EMA), weighted (WMA), exponential weighted (EWMA), and Hull (HMA). I tested 43,770 trades to discover which are the best performing.

Commodity Channel Index (CCI) Explained & Best Settings Tested

Our research shows the Commodity Channel Index (CCI) is a profitable momentum indicator used to identify overbought and oversold conditions. It measures the strength of trends and volatility in stocks, commodities, and indices.

200-Day Moving Average Explained: I Test its Profitability

The 200-day moving average is a 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 days.

Rate of Change (ROC) Explained: Best Settings for 66% Success Tested

The Rate of Change (ROC) is a momentum technical indicator measuring the speed and direction of asset price movements. ROC helps traders determine whether a security is trending and how quickly its price changes.

What is EMA? Best Exponential Moving Average Settings Tested  

An exponential moving average (EMA) technical indicator reduces the lag associated with simple moving averages (SMA) by applying a multiplier to the most recent data. EMAs provide improved sensitivity, enhancing the accuracy of trend analysis.

Stochastic Oscillator Explained: Best Strategy & Settings Tested

The Stochastic Oscillator momentum indicator compares an asset's closing price to a range of its previous prices. It oscillates between 0 and 100; below 20 indicates oversold, and above 80 suggests an overbought market.

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.

What is Ichimoku Cloud? 15,024 Trades Test Strategy & Settings

Ichimoku Cloud, or "Ichimoku Kinko Hyo", is a moving average based chart indicator that visualizes the market's direction, momentum, and support/resistance levels.

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%.

TradingView Review 2024: Tested by LiberatedStockTrader

Our testing shows TradingView is best for international stock, Fx, and Crypto traders. It's the ultimate all-rounder with a global community, heatmaps, broker integration, pattern recognition, backtesting, and screening.

Stock Rover Review 2024: Is It The Best Stock Screener?

Our testing shows Stock Rover is best for long-term dividend, value, and growth investors. Its exceptional features are in-depth screening of a 10-year financial database, research reports, and broker-integrated portfolio management.

Trade Ideas Review 2024: Holly AI Bot Tested by LiberatedStockTrader

Our in-depth testing shows Trade Ideas is the ultimate black box AI-powered day trading signal platform with built-in automated bot trading. Three automated Holly AI systems pinpoint trading signals for day traders.

TrendSpider Review: Big 2024 Updates! Is It Now The Best?

Our TrendSpider testing finds it is ideal for US traders wanting AI-automated charting, pattern recognition, and backtesting of stocks, indices, futures, and currencies.

Benzinga Pro Review 2024: Tested by LiberatedStockTrader

Our testing shows Benzinga Pro is best for US traders who want a high-speed, actionable, real-time news feed at 1/10th of the price of a Bloomberg terminal. I recommended Benzinga Pro for active day traders and investors who trade news events.

MetaStock Review 2024: Tested by LiberatedStockTrader

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