★ Chart Indicator Guides ★
Chart Indicator Research
12 Proven Ways to Trade Stock Chart Indicators Profitably
As a Professional market analyst, I build effective trading strategies using techniques such as indicator divergences, multi-time frame analysis, indicator combinations, and rigorous backtesting.
How to Trade 5 Mean Reversion Indicators: 120K Trades Tested
I conducted over 120,000 test trades on five key mean reversion indicators: Stochastics, RSI, Commodities Channel Index, MACD, and Bollinger Bands. Each indicator varies in reliability and profitability.
I Tested 23,487 RSI Trades: The Best Settings Proven
I tested 23,487 RSI trades on 820 years of exchange data. When configured correctly, RSI can be highly profitable, with a 53% success rate and an average of 65% winning trades. The RSI setting of 14 on a 1-hour chart is the most reliable configuration for identifying profitable buy and sell signals.
OBV Indicator Best Settings & Trading Strategy Explained
On-balance volume (OBV) is a cumulative indicator in technical analysis designed to show the volume flow relative to a security's price movements. The OBV reflects the collective buying and selling pressure crystallized through the volume trend.
How to Trade Pivot Points in Stocks Based on 66,480 Trades
Most technical traders believe that pivot points are a profitable strategy. However, my testing shows that only 33% of the stocks tested outperformed a buy-and-hold strategy, and on average, 70% of trades resulted in losses.
See My Test Results Before Trading Donchian Channels
I backtested Donchian Channels with 360 years of stock exchange data. My results reveal that 35% of trades are profitable, with a reward-to-risk ratio of 2.4:1. Unfortunately, this means Donchian Channels show only a minimal profit expectation of 0.2.