Chart Indicator Analysis

Chart indicators are tools traders use to attempt to predict the future direction of a stock’s price. 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 research provides 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 and measure potential rewards versus risks.

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.

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.

ATR Indicator: Settings, Reliability & Usage Tested

The average true range (ATR) is a nondirectional momentum indicator that measures price volatility. Our 1,205 test trades showed a solid 1.77 reward-to-risk ratio with an average 8.5% winning trade.

Fibonacci Retracement Trading Tested! Does it Work?

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?

VWAP Indicator Best Settings & Strategy Based on 13,681 Trades

Using VWAP with a 14 setting on a daily Heikin Ashi chart is vastly superior to conventional OHLC charts. Using an OHLC chart, the strategy barely breaks even with a low-profit expectancy of 0.15. In contrast with a Heikin Ashi chart, the strategy is incredibly profitable, with a profit expectance of 0.83 and a reward-to-risk ratio of 3.03.

Is the Supertrend Indicator Super? 4,052 Test Trades Show How to...

Based on our extensive testing, it has been determined that when used as a standalone indicator, Supertrend does not demonstrate reliability or profitability. With an average profit expectancy of 0.24, it is recommended to combine Supertrend with other indicators.

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. 

Are Keltner Channels Worth Trading? Best Settings 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.

Advance/Decline (A/D) Line Explained by a Certified Analyst

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.

5 Moving Average Indicators Tested on 43,770 Trades

The best moving average settings are SMA or EMA 20 on a daily chart, which achieves a 23% win rate. At settings 50, 100, and 200, it is better to use the Hull moving average, which has win rates of 27%, 10%, and 17%, respectively.

MACD Strategy & Reliability Tested by LiberatedStockTrader

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.

Is the S&P 500 200-Day Moving Average Profitable? I Test It!

Our testing of the 200-day MA on the S&P500 over 16 years revealed that using this indicator is a losing proposition. A buy-and-hold strategy made a profit of 192% vs. the 200-day MA, which made only 152%.

Best Commodity Channel Index (CCI) Settings Tested on 43,297 Trades

Our test data shows that using the CCI indicator with a 50 setting on the S&P 500 index stocks over 20 years was incredibly profitable, returning a 1,108% profit compared to the market, which returned 555%.

7 Parabolic SAR Trading Strategies Tested by LiberatedStockTrader

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.

Bollinger Band Trading Strategies Tested by LiberatedStockTrader

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.

Rate of Change Indicator Test: Trading a 66% Success Rate

The Rate of Change (ROC) is a momentum indicator that measures the speed and direction of asset price movements. It 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.

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.