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.

Gravestone Doji: Does It Work? I Test 1553 Trades To See!

A Gravestone Doji candle indicates a battle between buyers and sellers and is supposedly bearish. Our 1,553 test trades prove it is profitable, but it does not work as most traders believe.

Hammer Candlestick: Is It Reliable? 2,219 Test Trades Say No!

According to 2,219 tested trades, a Hammer is extremely unreliable and unprofitable. It has a low % accuracy rate of 52.1%, resulting in a razor-thin 0.18% profit per trade.

Dragonfly Doji: Is it Accurate? I Test 1,703 Trades!

The Dragonfly Doji is a candlestick chart pattern that indicates an equilibrium between buyers and sellers after a day of trading volatility. Our 1,703 test trades prove it can be profitable under the right circumstances, but the margins are thin.

Advance/Decline Line: How Market Analysts Use It

The Advance-Decline line market breadth indicator shows you if the broad market is moving in step with an index. If not, this is a price divergence opportunity, and you should prepare for a trend direction change.

Avoid Equivolume & Use These 6 Data-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.

Fibonacci Retracement Trading: Tested & Proven Unreliable!

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.

5 Best Moving Averages & How to Trade Them Like a...

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.

200-Day Moving Average Explained: I Test if its Worth It!

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.

Rate of Change Indicator: ROC Testing Shows a 66% Success Rate

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.

Money Flow Index: Proven Reliable & Accurate Over 26 Years!

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.

Is the Aroon Indicator Reliable? I Test 13,360 Years of Data!

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.

Stochastic Oscillator: 399 Years Of Test Data Reveals Surprises

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.

Ichimoku Cloud: 600 Years of Data Says Avoid this Indicator

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.

Exponential Moving Average: Mythbusting with 960 Years of Data!

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.

Simple Moving Average: 960-Year Test Results

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.

Hull Moving Average: Indicator Performance Test

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.

Is the KDJ Indicator Worth It? I Backtest KDJ for 600...

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.

Parabolic SAR Indicator: Strategy Test on 2,880 Years of Data

I backtested seven Parabolic SAR trading setups from 1-minute to daily charts across the DJ30 stocks over 12 years, equaling over 2,880 years of testing data. On standard charts, PSAR is not a profitable trading indicator. But I did discover the most profitable PSAR configuration.

RSI Indicator: The Best Way to Trade RSI Based on Data

I backtested four RSI indicator trading setups from 1-minute to daily charts across the DJ30 stocks from 1 month to 27 years, equaling over 820 years of testing data. Not all RSI configurations work, but I discovered the most profitable RSI indicator settings.

Weighted Moving Averages: Test Data Says Avoid WMAs

The weighted moving average (WMA) is a widely used chart indicator, but our testing reveals it underperforms other moving averages with only a 7% win rate. Using WMA as a trading tool is not advised due to its incredibly poor performance.

Our Best Training & Strategies

Liberated Stock Trader Pro: Learn Stock Market Investing

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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 Strategy Beat the Stock Market’s S&P 500 By 102% In...

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%.