www.CandlestickForums.com – Stock Trading Signals Successful technical stock traders commonly use stock trading signals to profitably buy stock and sell stock. This is the practice of technical analysis which seeks to predict stock price direction based upon past stock prices and stock trading volume. Stock trading signals are effective because stock market history repeats itself, the market effectively discounts stock fundamentals, and the psychology of investing is a major price mover. Using the stock trading signals in Candlestick analysis helps traders to profitably anticipate a market rally, market reversal, and tell if market trends will continue. The investor may claim that stock fundamentals alone drive stock prices. Certainly, long term investing relies heavily on fundamental analysis of stocks. However, obtaining the best price in selling stock or buying stock is commonly best accomplished with stock trading signals such as Candlestick patterns. Although the price of a stock is driven long term by its fundamentals it is the psychology of trading, as well as investing, that moves prices minute by minute. Combining fundamental and technical analysis as seen in stock trading signals are both necessary ingredients to success in buying and selling stocks. Traders use stock trading signals to find recognizable, and repeating, price patterns. These patterns happen because of changes in stock fundamentals, the economy, and market psychology. However, the trader commonly …
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