Technical Analysis

Technical analysis is the art and science of interpreting the supply and demand in the market for an asset, whether a stock, commodity or currency. Technical analysis helps you understand stock trends, charts, direction, and risk-reward.

Trading the Rising Wedge Pattern’s 81% Success Rate

According to multi-year testing, the rising wedge pattern has a solid 81% success rate in bull markets with an average potential profit of +38%. The ascending wedge is a reliable, accurate pattern, and if used correctly, gives you an edge in trading.

Trade the Inverse Head & Shoulders with 89% Accuracy

The inverse head and shoulders pattern is one of the most accurate technical analysis reversal patterns, with a reliability of 89%.  It occurs when the price hits new lows on three separate occasions, with two lows forming the shoulders and the central trough forming the head.

Head & Shoulders Pattern: Trade an 81% Success Rate

The head and shoulders pattern is one of the most accurate technical analysis reversal patterns, with a reliability of 81%. A head and shoulders top occurs when the price peaks on three separate occasions, with two peaks forming the "shoulders" and the central peak forming the head.

Trading a Double Bottom Pattern’s 88% Success Rate

Decades of research reveal the double bottom pattern has an 88% success rate in bull markets and an average profit potential of +50%. The double-bottom chart pattern is one of the most reliable and accurate chart indicators for traders.

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.

Bull Pennant: Why Traders Lose With This Pattern

Traders must be cautious when trading bull pennants. Published research reveals a low success rate of 54% and a meager price increase of 7%. This implies pattern trading bullish pennants is as good as coin-flipping with unfavorable odds.

5 Best Candlestick & Chart Pattern Recognition Software 2024

Our 20-point test reveals the best stock chart candlestick pattern recognition software are TrendSpider, TradingView, and Finviz.

5 Steps to Choose the Best Technical Analysis Course

When selecting a technical analysis course, consider your preference for industry certification, certified instructors, or both. Also, think about the course duration and depth of content that best suits your needs. Lastly, check the training provider's returns policy for peace of mind.

Falling Wedge Pattern: A 74% Chance of a 38% Profit!

A falling wedge is a technical analysis pattern with a predictive accuracy of 74%. The pattern can break out up or down but is primarily considered bullish, rising 68% of the time.

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.

Triple Bottom Pattern: Trading an 87% Success Rate

Decades of trading research show the triple-bottom pattern has an 87% success rate in bull markets and an average profit potential of +45%. The triple bottom chart pattern is popular because it is reliable and accurate and generates a good average profit for traders.

Stock Market Trends: 6 Steps for Better Trend Analysis

All stock market trends can be described by using the following definitions. Market timeframes are short-term-medium-term, and long-term. Market direction is described using uptrend, downtrend, or consolidation.

How to Draw Trendlines on Stock Charts Like a Boss

Drawing trendlines on stock charts is a powerful way to assess the direction of the market. Trendlines help you understand the trend direction and timeframe to set expectations for future market moves. 

Avoid Equivolume & Use These 6 Proven Charts

Equivolume charts have lost their popularity over time due to poor performance in testing and weak data visualization. I demonstrate why equivolume is no longer in use and introduce six charts proven superior by data.

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.

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.

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.

Do Tweezer Top & Bottom Candle Patterns Work? I Test It!

Based on our testing of 1,892 trades, the tweezer top and bottom patterns are highly unreliable and unprofitable. These patterns exhibit a reward-to-risk ratio of only 1.07, with 50% of trades resulting in losses. Relying on tweezers as a trading strategy yields poor results.

Heikin-Ashi Candles Explained & Reliablility Tested

Our research shows that Heikin-Ashi charts are better than candlesticks for maximizing returns in trading strategies. We backtested 360 years of data across 30 major, and our findings prove that Heikin-Ashi chart strategies outperform 60% of equities vs. a buy-and-hold strategy.

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.

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%.