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 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.

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.

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 Trade the DMI Indicator Profitably: 9,764 Trades Tested

Our testing, based on 9,764 trades over 25 years, proves the DMI indicator is profitable and reliable, outperforming the S&P 500 index.

Simple Moving Average Trading Settings & Strategy Tested

The simple moving average (SMA) technical analysis indicator helps identify stock price trends. It calculates an arithmetic average of prices, offering a smooth line that eliminates short-term price volatility.

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.

Fibonacci Retracement Trading Tested! Does it Work?

In technical analysis, Fibonacci retracement is used by traders to predict levels of support and resistance by drawing horizontal lines according to the Fibonacci sequence. But Does It Work?

VWAP Indicator Best Settings & Strategy Based on 13,681 Trades

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.

23 Best Stock Chart Patterns Proven Reliable By Data Testing

Published research shows the most reliable and profitable stock chart patterns are the inverse head and shoulders, double bottom, triple bottom, and descending triangle. Each has a proven success rate of over 85%, with an average gain of 43%.

A Financial Analyst’s Guide to Trading the Volume Indicator

Stock volume, or trading volume, is the total number of shares traded during a specific period. Volume indicates buying and selling pressure and potential changes in a stock's trend direction and quality.

Top 10 Reliable Candle Patterns: 56,680 Trades Tested

Our 56,680 test trades show the most reliable candlestick formations are the Inverted Hammer (60% success rate), Bearish Marubozu (56.1%), Gravestone Doji (57%), and Bearish Engulfing (57%).

How to Read Stock Charts Like a Boss: Beginners Guide +pdf

To read stock charts you need to use stock charting software, select your chart type, configure your timeframe, determine price direction using trendlines and use indicators to estimate future prices.

10 Best Day Trading Indicators Proven with Data!

Our research on 10,400 years of exchange data shows the best day trading indicators are the Price Rate of Change, VWAP, Weighted Moving Average, Hull Moving Average, Simple Moving Average, and RSI.

12 Accurate Chart Patterns Proven Profitable & Reliable

Research shows that the most reliable chart patterns are the Head and Shoulders, with an 89% success rate, the Double Bottom (88%), and the Triple Bottom and Descending Triangle (87%). The Rectangle Top is the most profitable, with an average win of 51%.

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. 

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.

Are Keltner Channels Worth Trading? Best Settings Tested

A Keltner Channel is a volatility-based trading indicator combining a simple moving average, exponential moving average, and average true range to plot a channel on a chart. It identifies trading signals using overbought and oversold conditions.

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.

LiberatedStockTrader’s Strategy Beat the Market 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%.