Technical Analysis, Charts, Patterns & Indicators
Learn technical analysis and how to read stock charts. This helps you understand the movement of stock prices, stock trends, and the supply-demand equation. Stock chart indicators and market sentiment are all important factors.
The Best Software for Trading & Stock Chart Analysis
Our tests show Trade Ideas is the best AI stock trading Bot software for finding and executing high-probability trades. Tickeron's AI stock trading Bots provide swing trading signals, and TrendSpider has AI chart pattern recognition.
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.
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.
Stock Trading Courses You Might Enjoy
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).
Liberated Stock Trader offers free stock investing courses covering value, growth, and dividend investing, plus technical chart analysis. Our courses are developed by IFTA member and certified financial technician Barry D. Moore.
Find the best growth stocks to buy now using a 9-year tested and proven strategy system that selects stocks that outperform the S&P 500. Instead of following stock tips from financial websites, you can adopt a structured approach to find stocks with a proven track record of beating the market.
Our research shows that Heikin-Ashi charts are better than candlesticks for maximizing returns in trading strategies. We backtested 360 years of data across 30 major, and our findings prove that Heikin-Ashi chart strategies outperform 60% of equities vs. a buy-and-hold strategy.
Our research shows the most effective chart types for traders are Heikin Ashi, Candlestick, OHLC, Raindrop, and Renko charts. These charts provide the best balance of price and trend reversal information to help investors build effective trading strategies.
Point and Figure (P&F) charts are a unique form of technical analysis that focuses solely on price action, disregarding time and volume. They utilize 'Xs and 'Os to depict price movements, with 'X' representing an increase and 'O' a decrease.
Renko charts filter out unnecessary price fluctuations to provide a clear stock price trend that traders can use in their investing strategies. Renko charts are gaining in popularity due to their ability to filter out market noise and provide a clearer picture of the price action.
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.
Traders utilize pivot point indicators to predict when stock prices will reverse direction. But does it work? I tested 66,480 trades on 210 years of data, and the results are surprising.
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.
In technical analysis, momentum indicators help traders identify the strength and direction of a stock's price. They confirm trends, spot reversals, and generate buy and sell signals.
Stock volume is the total number of stocks traded during a specific period. Volume indicates buying and selling pressure and potential changes in a stock's trend direction and quality.
Our reliability testing of Bollinger Bands on the S&P 500, using 13,360 years of data, suggests it is an unreliable, unprofitable indicator for traders. However, Bollinger Bands can be profitable, but you need to know how it works, how to trade it, and the optimal settings.
Our research shows the Commodity Channel Index (CCI) is a reliable and profitable technical analysis indicator yielding win rates of up to 85% when used with the correct settings.
With over 10,400 years of backtested exchange data, our original research reveals the best indicators for day trading are the Price Rate of Change, VWAP, Weighted Moving Average, Hull Moving Average, Simple Moving Average, and Relative Strength Index.
Professional market analysts build trading strategies using trading indicator techniques like divergences, multi-time frame analysis, indicator combinations, and rigorous backtesting.
After testing three strategies across 1800 years of data, we confirm Keltner Channels are generally a losing trading strategy. Keltner Channels use simple and exponential moving averages, which we have already proven to be poor chart indicators.
Fibonacci sequences and retracement are popular trading indicators among amateur investors, but our backtested research reveals it has a 63% failure rate. Our tests and 11 academic research papers demonstrate why traders and investors should avoid it.
The 5 best moving averages for traders are the simple, exponential, weighted, exponential weighted, and Hull moving averages. Understanding how to interpret moving averages is a key skill for any trader looking for improved performance.
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.