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Value Stock Investing Complemented with Candlestick Signals

Value stock investing is the term that most fundamental research analysts include in their analytical description. What is value stock investing? The search for those companies that have good earnings growth/management/market potential. What is the strongest selling point for money managers? That they are adept with their value stock investing experience in finding the best growth company potential's. What is the risk for most of value stock investing programs? That the analysis of the company's future is correct.

Consider the elements involved with value stock investing. First, companies need to be found that have a product or a service that will be marketed/excepted into a market with success. How are these companies found for a value stock investing program? That requires the analysis of what the future will produce in specific markets. Secondly, what is the potential growth of the product/service into a market? This is the area that makes value stock investing the most difficult. More difficult in today's markets than just a few years ago. Value stock investing has become much more difficult to anticipate what will happen in the distant future due to all the advances that are turning in technology. What might be a viable market condition today may not be the same in six months from now or a year from now.

The advantage the candlestick analysis provides for value stock investing is that it pinpoints what investor sentiment is perceiving of a stock/sector right now. A breakout or a strong price move from a lethargic trading range becomes an alert that some new dynamic or perception is involved with that company/sector. This makes value stock investing much easier to implement. The candlestick signals illustrate a change of investor sentiment. They also can illustrate a dramatic change of investor sentiment. If a signal is produced from a stock price trading range that has not shown any great movement for extended period of time, and moves out of that range with dramatic force, the formation of the candlestick signal can alert the value stock investing community of something new occurring in the perception of that company right now!

With technology advances occurring constantly, there will be tremendous changes in the products available on the markets for stock market strategies. The advances of technology can completely alter the potential growth future of an industry. A prime example is video rental of industry. Not too many years ago, Blockbuster and Movie Gallery were the Golden Childs of the stock markets. Online video rental has now completely changed the perspective of those companies and even possibly the existence of those companies.

One of the member services on the candlestick forum is to identify companies that have created dramatic changes in an industry. These companies are found by  visible candlestick breakout signals. The combination of technical analysis ( candlestick breakout signals ) and fundamental research can produce very powerful profits in the coming markets. The candlestick signals can demonstrate when it is time to buy. Upon see in a strong breakout signal, researching the reason for that breakout will help to immediately identify a company that has produced something that will make it a major investment potential. Using the candlestick signals to identify a dramatic change of investor sentiment and then following up with research on what made that change of investor sentiment becomes a very powerful combination.

IFO Chart

All  investor  are looking for stock positions that can double, triple, or quadruple in a very short period of time. Candlestick signals used correctly provides a format for identifying those possible situations at the beginning of the price move.

 

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