My research indicates that the most effective chart types for traders are Heikin-Ashi, Candlestick, OHLC, Raindrop, and Renko charts. These charts provide the optimal balance of price and trend reversal information to help investors develop effective trading strategies.| Liberated Stock Trader
Buying and selling currency in Forex trading is for advanced speculators. Because currency fluctuations are so small, a margin is required, making it a volatile and highly risky endeavor.| Liberated Stock Trader
Kagi charts provide traders with a unique perspective on price action, filtering out much of the noise and highlighting genuine trends. Getting a handle on how to use Kagi charts, dialing in the right settings, and understanding how they compare to other chart types can really sharpen your technical analysis and trading decisions.| Liberated Stock Trader
According to my research, during a bull market, investors should hold a stock for between 50 and 300 days to allow profits to develop optimally. The ideal hold time for swing traders is 45 days for an average profit of 30%.| Liberated Stock Trader
My reliability testing of Bollinger Bands on the S&P 500, using 13,360 years of data, suggests it is an unprofitable indicator for traders. However, Bollinger Bands can be highly profitable, with the optimal settings.| Liberated Stock Trader
According to 2,219 tested trades, a Hammer is extremely unreliable and unprofitable. It has a low % accuracy rate of 52.1%, resulting in a razor-thin 0.18% profit per trade.| Liberated Stock Trader
A one-point move in a stock price equals a one-dollar change. When someone says a stock is down two points, its price has declined by two dollars. Points in a stock index are similar to points in a stock, but instead of referring to the actual stock price, they refer to an index's performance.| Liberated Stock Trader
Commodities are tangible goods such as food, metals, and energy that traders can buy or sell in the financial markets. These commodities are traded on global exchanges, and their prices fluctuate based on supply and demand.| Liberated Stock Trader
A dead cat bounce is a short-term asset price recovery after a significant volatile decline, followed by a continuation of the downtrend. Look for a short-lived rally that loses momentum quickly, often trapping bullish traders.| Liberated Stock Trader
Ultimately, for 95% of speculators, day trading is not worth it. Although day traders can make significant money quickly, statistics show that most day traders lose money. Over a six-month period excessive commissions, poor trading decisions, weak strategies, and bad market timing cause losses.| Liberated Stock Trader
Using stock leverage, which involves trading stocks with a margin account, leveraged ETFs, or stock options, can be a double-edged sword. It has the potential to magnify both your gains and losses.| Liberated Stock Trader
Over-leverage is using excessive debt to finance investments or business operations, leading to excessive risk. Financial risk increases as the level of debt exceeds the ability to generate sufficient returns to cover the interest payments and principal repayment obligations.| Liberated Stock Trader
Based on our 568 years of backtested data, the Shooting Star candle is profitable. 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.| Liberated Stock Trader
Our research shows the Inverted Hammer is the most accurate and profitable candlestick pattern. Used as a bullish signal, it has a 60% success rate and an average win of 4.2%, based on 588 years of data.| Liberated Stock Trader
Our research shows Bullish Harami and Bullish Harami Cross are profitable patterns. Based on 1,112 years of data, the bullish Harami has an average profit per trade of 0.5% and the Harami Cross 0.58%.| Liberated Stock Trader
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%.| Liberated Stock Trader
My research shows the Bearish Engulfing candle is an accurate and profitable pattern. Using 568 years of data, my testing revealed a 57% success rate and an average win of 3.7%.| Liberated Stock Trader
Stock volume measures the number of shares traded and indicates market strength. Rising markets with increasing volume are viewed as bullish, and falling prices on higher volume are bearish.| Liberated Stock Trader
Renko charts filter out unnecessary price fluctuations to provide a clear stock price trend that traders can use in their investing strategies. Unlike a traditional bar or candlestick chart, Renko charts are based on price changes rather than time.| Liberated Stock Trader
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
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 in technical analysis.| Liberated Stock Trader
My research shows the most reliable and accurate bullish patterns are the cup-and-handle, with a 95% bullish success rate, head-and-shoulders (89%), double-bottom (88%), and triple-bottom (87%).| Liberated Stock Trader
I backtested 360 years of data on the 30 most important US stocks, and our findings prove that Heikin-Ashi chart strategies outperform 66% of equities vs. a buy-and-hold strategy.| Liberated Stock Trader
There are two types of continuation patterns: bullish and bearish. Bullish continuation patterns occur when the market is trending upwards, while bearish continuation patterns happen when the market is trending downwards.| Liberated Stock Trader
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.| Liberated Stock Trader
My rigorous testing shows the most reliable candle patterns are the Inverted Hammer (60% success rate), Bearish Marubozu (56.1%), Gravestone Doji (57%), and Bearish Engulfing (57%). The inverted hammer is the most profitable candle pattern, with a 1.12% profit per trade.| Liberated Stock Trader
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%, followed by the Rectangle Bottom with 48%.| Liberated Stock Trader
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.| Liberated Stock Trader
My in-depth testing shows that TradingView, TrendSpider, and Trade Ideas are the best tools for traders, and Stock Rover is superior for investors. Each provides unique benefits, features, and price points.| Liberated Stock Trader
Testing reveals the best stock chart candlestick pattern recognition software is TrendSpider, TradingView, MetaStock, and Finviz.| Liberated Stock Trader
In technical analysis, momentum indicators help traders identify the strength and direction of a stock's price. We explain and test three popular momentum indicators for reliability.| Liberated Stock Trader
