Hedge funds and technical analysis more common in the last few yearsHedge funds and technical analysis - a candlestick signal benefit.
Hedge funds and technical analysis are not the common combinations. Hedge funds and technical analysis has been well overshadowed with hedge funds utilizing fundamental analysis. Most hedge fund managers promote their capabilities for having the knack of identifying stocks/industries that are going to be outperforming the markets sometime in the future. For most investors, this creates one huge risk factor. What happens if that fund manager is not correct in their assessment of the future? The investor suffers a double loss. First, the possibility of losing money over a long time frame. Most hedge fund managers want a lock-in period to allow the analysis to prove itself. If that assessment loses money, not only is there an actual dollar loss, but the second factor is that the time is also lost.
Hedge funds and technical analysis is something that has been developed in recent years due to the abilities that computer programming provides. Hedge funds and technical analysis can now be combined to provide a double advantage. The rationale should be that technical analysis illustrates what should be occurring now. Candlestick signals are the purest form of technical analysis revealing what is going on in investor sentiment right now. The double advantage created when searching for a hedge fund that utilizes technical analysis is that it should produce profits almost immediately. This means that an investor does not need to be locked into a hedge fund managers assessment of future developments for a long period of time.
Candlestick signals enhance all forms of technical analysis. The ability to visually evaluate what is occurring right now dramatically reduces the risk of hoping that somebody's assessment of what should happen in the future will occur.
Candlestick signals become the core for improving technical investing as well as fundamental investing timing. Wouldn't you like to be able to trade any market successfully? That is what candlestick signals provide. The signals and the investment patterns that produce high profit results can be visually recognized easily. Being able to identify the high probability, high profit patterns puts investors in the situations that have a strong potential for producing profits. Gaps become a very important element for identifying both long and short high profit trade potentials. Click here to view the Candlestick Forum 'GAPS' training CDs.
Understanding the change of investor psychology incorporated in the 12 major signals produces powerful trend potential's. As illustrated in the Long Drug Stores Inc. chart, a series of doji indicated a change of investor sentiment at the bottom of a downtrend. The gap up the following day, trading up through the 50 day moving average, made this candlestick chart pattern a high potential profitable trade. The Candlestick Forum's recommendation of this stock position the following day was predicated upon the chart pattern that revealed a dramatically strong change of investor sentiment. Chart patterns are the visual identification of reoccurring investor habits that have occ