Calling the exact bottom or top of a trend is hard, so many traders wait for a confirmation signal before… Read more »
Trend Reversal Confirmation Indicators: A Safer Signal or Just a Late One?
Posts Tagged: backtesting
Failed Breakout Trading Strategy: How to Trade the Trap Instead of Falling for It
Every breakout trader has been caught by one. Price pushes through a level, you buy, and within hours it is… Read more »
Earnings Gap Trading Strategy: Does the Move Really Keep Going?
An earnings gap happens when a stock opens far from its previous close after a company reports results. It is… Read more »
Stock Breakout Retest Strategy: Waiting for the Pullback and What It Costs You
A breakout retest entry offers a closer stop and some confirmation, but Bulkowski’s data shows only about half of breakouts come back to the level. Here is how the strategy works and how to test it fairly.
Stock Breakout With Low Volume: Trap or Opportunity?
Conventional wisdom says a breakout needs heavy volume. Two large datasets point in different directions, so here is what each found and how to treat a low-volume breakout without overstating the signal.
Inside Bar False Breakout: How the Fakey Setup Works and What the Evidence Says
An inside bar is a quiet moment on a chart: a candle whose entire range sits inside the previous candle…. Read more »
Bullish Engulfing Candle Hit Rate: What the Statistics Actually Say
The bullish engulfing candle is probably the most widely taught reversal pattern in technical analysis. A small down candle is… Read more »