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%.
8 Bearish Chart Patterns Tested & Proven Accurate & Reliable
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%).
10 Bullish Chart Patterns Proven Effective & Profitable
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.
12 Accurate Chart Patterns Proven Profitable & Reliable
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.
5 Best Candlestick & Chart Pattern Recognition Software
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.
Inverse Cup and Handle: 82% Reliability for Short-Sellers
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.
Bear Flag Pattern: Reliability & Success Rate Based On Data
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.
Bull Pennant: Why Traders Lose With This Pattern
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.
Bear Pennant: Traders Must Avoid this Chart Pattern
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.
Cup and Handle Pattern: Trading a 95% Reliable Chart Pattern
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.
Falling Wedge Pattern: A 74% Chance of a 38% Profit!
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.
Inverse Head & Shoulders: An 89% Accurate Chart Pattern!
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.
Triple Bottom Pattern: Trading an 87% Success Rate
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.
Double Bottom Pattern: Master An 88% Success Rate
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.
Rising Wedge Pattern: Trade an 81% Success Rate
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.
Rectangle Chart Pattern: Trade an 85% Success Rate
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.
Head & Shoulders Pattern: Trade an 81% Success Rate
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.
Descending Triangle: An 87% Successful Pattern
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.
Ascending Triangle Pattern: Apply an 83% Success Rate To Trading
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.
One Bull Flag Pattern Succeeds 85%, The Rest Fail
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.
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