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%.
Decades of research prove the most profitable bearish chart patterns are the Inverted Cup and Handle with an average -17% price decrease, Rectangle Top (-16%), Head and Shoulders (-16%), and the Descending Triangle (-15%).
Research shows the most reliable and accurate bullish patterns are the Cup and Handle, with a 95% bullish success rate, Head & Shoulders (89%), Double Bottom (88%), and Triple Bottom (87%). The most profitable chart pattern is the Bullish Rectangle Top, with a 51% average profit.
Research shows the most reliable and profitable chart patterns are the Head & Shoulders, with an 89% success rate, the Double Bottom (88%), and the Triple Bottom and Descending Triangle (87%). The most profitable chart pattern is the Rectangle Top, with a 51% average profit.
Testing reveals the best stock chart candlestick pattern recognition software is TrendSpider, TradingView, MetaStock, and Finviz. Tickeron's AI can detect traditional stock chart patterns.
The inverse cup and handle chart pattern is a technical analysis trading strategy. Traders use it to identify a breakdown in asset prices, aiming to profit from short-selling a sharp price decline. The inverse cup and handle chart pattern is considered reliable based on 556+ trades, with an 82% success rate in bull markets.
Be careful when trading bearish flags. According to published research, the bear flag pattern has a low success rate of 45%. This means you are flipping a coin when trading this pattern, as the odds are not in your favor. The high-tight bear flag is the only flag pattern you should trade.
Traders must be cautious when trading bull pennants. Published research reveals a low success rate of 54% and a meager price increase of 7%. This implies pattern trading bullish pennants is as good as coin-flipping with unfavorable odds.
Traders should avoid trading bear pennants. Decades of testing on over 1,600 trades show bearish pennants have a success rate of only 54% and a low price decrease of 6%. The evidence is clear, pattern trading bear pennants is not worthwhile.
Twenty years of trading research show the cup and handle pattern has a 95% success rate in bull markets and returns an average profit of +54%. The cup and handle chart pattern is reliable and accurate but can be difficult to identify.
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.
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.
Our Best Training & Strategies
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).
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.
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%.
Our detailed testing rates TradingView 4.8/5 stars due to its robust stock chart analysis, pattern recognition, screening, and backtesting. TradingView is our top recommendation for US and international traders.
Our Stock Rover review reveals an excellent stock screening, research, and portfolio tool for long-term US value, income, and growth investors. Easy to use yet incredibly powerful, Stock Rover is the best stock screener available for US investors.
Trendspider uses AI to recognize trendlines, chart patterns, and Fibonacci, and it even analyzes stocks for traders. TrendSpider is unique, reliable, and innovative.
Our Benzinga Pro review reveals trustworthy, dependable, real-time news, alerts, insider block trade, and options activity signals for US stock traders. Benzinga Pro is highly configurable, responsive, and easy to use while beating its competitors on price.
Our MetaStock review testing reveals powerful charting, system backtesting, forecasting, and Xenith real-time financial news for traders. MetaStock has unbeatable charts, indicators, and drawing tools, but it needs to be a little easier to use.