Technical Analysis

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.

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.

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.

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.

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 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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.