Technical Analysis

Elliott Wave theory has an avid following amongst technical traders, enabling an understanding of market moves in cycles and waves. But wave theory has serious reliability limitations in trading, which means it is unproven and cannot be backtested for accuracy.

The Moving Average Convergence Divergence (MACD) indicator is one of the most widely used yet poor-performing technical analysis indicators. Traders are misled into believing they can profit from this indicator.

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.

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

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, accurate, and generates a good average profit for traders.

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.

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.

A rectangle is a well-established technical analysis pattern with a predictive accuracy of 85%. The pattern is flexible, can break out up or down, and is a continuation or reversal pattern.

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.

A descending triangle is a powerful technical analysis pattern with a predictive accuracy of 87%. The pattern is flexible and can break out up or down, and is a continuation or a reversal pattern.

According to two decades of trading research, the ascending triangle pattern has an outstanding 83% success rate in bull markets with an average potential profit of +43%. It's a well-known, reliable, and accurate pattern that can generate good profits.

A bull flag is a popular yet widely misunderstood technical analysis pattern characterized by a rapid upward price trend followed by parallel downslope consolidation in price. The price increase resembles a flag pole, while the price consolidation is the flag.

The Market Profile chart uses price and time to provide a unique way to visualize market action and the most important prices of a day's trading. The three core concepts are the point of control (POC), the time price opportunity (TPO), and 30-minute time blocks.

Dow Theory is Explained Using His Six Tenets or Principles. These Principles form the Backbone of Modern Technical Analysis of Stocks & Markets

You can analyze stocks using fundamental criteria like PE Ratio, Earnings, and Cash Flow, or with technical analysis using charts, stock price, volume, and indicators.