Fundamental and technical analysis benefit each other when using candlestick signals
Fundamental and technical analysis- candlestick signals enhances both
Fundamental and technical analysis can work in conjunction for finding the best possible trade. The combination of fundamental and technical analysis provides a very viable universe of high quality trades when applying candlestick signals. Consider the advantages that occur when both fundamental and technical analysis is utilized for investment decisions. What should be the best universe of stocks? Those stocks that have a fundamentally sound background. There are analysts out there that discover and recognize fundamentally strong companies. Unfortunately, they feel that buying and holding is the best investment strategy. The rationale being that a fundamentally sound company will eventually be discovered by the rest of the market. That usually means their timing stinks.
Candlestick signals have a very viable benefit to the combination of fundamental and technical analysis. If a universe of stocks is developed with the criteria being that they are fundamentally strong companies, this greatly reduces the probabilities of being surprised with bad financial numbers. However, being in a fundamentally sound/strong company does not necessarily mean a stock price is going to appreciate. What makes prices move up or down? The perception of what the fundamentals can do is what makes prices move.
Utilizing candlestick signals has a very strong benefit for investing in fundamentally sound companies. The signals illustrate when investors are getting into and out of stock positions. Fundamental and technical analysis should be exploited to its fullest potential. Analyzing the universe of fundamentally sound companies with candlestick signals allows an investor to time their positioning in strong companies. Theoretically, all sound/strong fundamentally run companies should go up. Reality proves differently, as was seen in the late 1990s, money did not flow into the fundamentally sound companies. Massive amount of funds flowed into companies that had no fundamentals at all.
When is it time to buy a stock? When the markets perceive that it is time to be in that stock/sector. The candlestick signals clearly illustrate when funds flow from one sect