Stock Market Results Enhanced with Candlestick Signals
Stock market results require a proven trading system. Whether day-trading or long-term investing candlestick signals dramatically enhance an investor's capability to recognize reversals. Most stock market results are based upon a mixture of investment decisions. Some investors will buy every hot stock tip that they hear. Some investors will only invest in stocks that are above specific moving averages. The best stock market results occur when an investor has a well disciplined investment strategy. Candlestick signals provide an extremely high probability format for identifying the best possible investment situations.
Stock market results should be based upon an investment strategy that is going to maximize an investor's return. This may be overstating the obvious, but most investors confuse having an investment strategy with producing positive results. Fundamental research looks to identify stocks/sectors that have great potential for the future. The risk factor for long-term fundamental analysis is that many factors can come into the market before any expected result can occur in a stock price. Today's fundamental research, which expects specific stock market results, may be influenced by other market factors that cannot be projected at the time of the initial analysis. World events or improvements in competitor's products can greatly affect the long-term outcome of a stock price.
Candlestick signals provide an expected set of results. These stock market results are based upon centuries of analysis of what investor sentiment does to price movement. A candlestick buy signal in an oversold condition creates a high probability of a bullish trade. A candlestick sell signal in an overbought condition creates a high probability of a downtrend starting. Stock market results can be greatly refined when understanding what the candlestick signals are conveying. High profit trades can be much better analyzed when knowing what previous signal patterns have produced. As illustrated in the Neoware chart, the position was recommended when a bullish engulfing signal occurred in the oversold condition followed by a gap up the next day. The fact that investors wanted to come into this position with exuberant buying after a candlestick buy signal in oversold condition reveals that a strong uptrend was now in the making.
The Bullish Engulfing signal illustrates a reversal in investor sentiment. A gap up after that reversal represents that the new investor sentiment involves very strong buying demand. This combination has a high probability of producing strong profits. The gap up from a bullish candle reveals very strong buying. Utilizing candlestick signals followed by gap ups can make a very good living for the astute candlestick investor. This is not a difficult concept. Where do you want to have your funds invested? Where the buyers are buying aggressively! The candlestick forum provides some excellent training CDs utilizing candlestick signals followed by gaps. Most investors do not want to buy a stock that is already up 10%, 15%, 20% on the day. However, a candlestick investor, knowing what the gaps mean after a candlestick signal can participate in price moves that may still have a 100%, 200%, or greater move left in it after the gap up.