5 Moving Average Indicators Tested on 43,770 Trades
The best moving average settings are SMA or EMA 20 on a daily chart, which achieves a 23% win rate. At settings 50, 100, and 200, it is better to use the Hull moving average, which has win rates of 27%, 10%, and 17%, respectively.
Is the S&P 500 200-Day Moving Average Profitable? I Test It!
Our testing of the 200-day MA on the S&P500 over 16 years revealed that using this indicator is a losing proposition. A buy-and-hold strategy made a profit of 192% vs. the 200-day MA, which made only 152%.
Best Commodity Channel Index (CCI) Settings Tested on 43,297 Trades
Our test data shows that using the CCI indicator with a 50 setting on the S&P 500 index stocks over 20 years was incredibly profitable, returning a 1,108% profit compared to the market, which returned 555%.
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%).
1,680 Trades Test the Shooting Star Candle’s Reliability
Based on 568 years of data, our research shows the Shooting Star candle is bullish, not bearish, as most traders believe. It has a 57.1% upside success rate and an average winning trade of 3.6%. Each trade made using a shooting star nets an average of 0.56% profit.
Rate of Change Indicator Test: Trading a 66% Success Rate
The Rate of Change (ROC) is a momentum indicator that measures the speed and direction of asset price movements. It helps traders determine whether a security is trending and how quickly its price changes.
What is EMA? Best Exponential Moving Average Settings Tested
An exponential moving average (EMA) technical indicator reduces the lag associated with simple moving averages (SMA) by applying a multiplier to the most recent data. EMAs provide improved sensitivity, enhancing the accuracy of trend analysis.
Stochastic Oscillator Explained: Best Strategy & Settings Tested
The Stochastic Oscillator momentum indicator compares an asset's closing price to a range of its previous prices. It oscillates between 0 and 100; below 20 indicates oversold, and above 80 suggests an overbought market.
6 Principles of Dow Theory Explained with Examples & Video
Dow theory's six principles underpin technical analysis: The market discounts everything; it has three trends and phases; the averages must confirm each other; volume confirms the trend and a trend continues until it reverses.
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.
Does Ichimoku Cloud Work? Success Rates & Settings Tested
Ichimoku Cloud, or "Ichimoku Kinko Hyo", is a moving average based chart indicator that visualizes the market's direction, momentum, and support/resistance levels.
Do Tweezer Top & Bottom Candle Patterns Work? I Test It!
Based on our testing of 1,892 trades, the tweezer top and bottom patterns are highly unreliable and unprofitable. These patterns exhibit a reward-to-risk ratio of only 1.07, with 50% of trades resulting in losses. Relying on tweezers as a trading strategy yields poor results.
Wyckoff Method Explained: Accumulation & Distribution Trading
The Wyckoff Method is built upon three cardinal laws that govern the financial markets: the Law of Supply and Demand, the Law of Cause and Effect, and the Law of Effort versus Result.
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.
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.
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 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 a 51% average win.
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.
Master Technical Analysis: A 14-Video Ultimate Guide
Our ultimate guide to technical analysis will fast-track your knowledge with our 14 videos covering charts, trends, indicators, patterns, and tools.
Mean Reversion Trading Strategy Explained with Examples
The mean reversion trading strategy suggests prices and returns eventually move back toward the mean or average. Reliable indicators like Stochastics, RSI, and Bollinger bands are based on mean reversion to identify 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.
Our LST Strategy Beat the Stock Market’s S&P 500 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%.