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.

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. 

Hammer Candlesticks Patterns Explained & Reliability Tested

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 Explained: Is it Reliable? I Test It!

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.

3 Top 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.

Trading a Doji Candle Explained: I Backtest It For Reliability!

A Doji candlestick chart pattern indicates a battle between buyers and sellers, ending in equilibrium. The Doji marks a potential trend reversal. Is the Doji pattern profitable or accurate? Our evidence suggests its profitability is marginal.

10 Best Candlestick Patterns Proven Successful & Reliable

Our research shows the most reliable and predictive candlestick patterns are the Inverted Hammer, with a 60% success rate, Bearish Marubozu (56.1%), Gravestone Doji (57%), and Bearish Engulfing (57%). The most profitable candle pattern is the Inverted Hammer, with a 1.12% profit per trade.

Bearish Engulfing Candles Explained & Reliability Tested

Our research shows the Bearish Engulfing candle is an accurate and profitable pattern. Our 568 years of data reveals a 57% success rate and an average win of 3.7%.

Are Bullish Harami Candles Profitable? We Test It?

Our research shows Bullish Harami and Bullish Harami Cross are profitable patterns. Based on 1,112 years of data, the bullish Harami has an average profit per trade of 0.5% and the Harami Cross 0.58%.

We Test Bullish & Bearish Marubozu Candles for Reliability

Our research shows Bearish Marubozu candles are among the most profitable patterns. Based on 568 years of data, it has a 56.1% success rate and an average win of 4.1%. Conversely, the Bullish Marubozu is one of the worst.

We Test the Inverted Hammer Candle Pattern! Is It Worth It?

Our research shows the Inverted Hammer is the most accurate and profitable candlestick pattern. Used as a bullish signal, it has a 60% success rate and an average win of 4.2%, based on 588 years of data.

Shooting Star Candle Pattern Meaning & Reliability Tested

Based on 568 years of data, our research shows the Shooting Star candle is bullish, not bearish, as most traders believe. It has a 57.1% upside success rate and an average winning trade of 3.6%. Each trade made using a shooting star nets an average of 0.56% profit.

Bearish Harami Pattern: 5,624 Trades Tested for Reliability!

Our research shows Bearish Harami and Bearish Harami Cross are profitable patterns. Based on 1,136 years of data, the Bullish Harami has an average profit per trade of 0.48% and the Harami Cross 0.57%.

Gravestone Doji Explained & Reliability Tested!

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

How to Read Candlestick Charts Using 5 Reliable Patterns

You can read candlestick charts using pattern recognition software to identify five reliable patterns, the Inverted Hammer, Bearish Marubozu, Gravestone Doji, Bearish Engulfing, and Bullish Harami Cross.

How to Backtest Trading Strategies in 2024 with Examples & Tools

Experienced investors backtest their trading strategies to optimize their portfolios. Backtesting is a critical step that enables traders to assess the potential viability of a trading strategy by applying it to historical data.

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.

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.

VWAP Indicator: 13,681 Test Trades Prove the Best Settings & Strategy

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.

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.

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%.