www.CandleStickForums.com Find the Market Bottom with Candlesticks As the Euro sovereign debt bailout regains life and another economic stimulus package is on the horizon it may be time for traders to find the market bottom with Candlesticks. Two things drive stock and stock market prices. These are the fundamentals of the economy and individual stocks on one hand and market sentiment on the other. In both trading and long term investing, margin of safety and intrinsic stock value are good measures of the value of a stock. What may look like a promising stock with a low price to earnings ratio may be underpriced as regards forward looking earnings but market sentiment may be such that the stock remains inactive and underpriced. Market sentiment is the composite action of everyone from the day trader to one who only engages in buy and hold investing. While fundamental analysis helps spot hidden stock value in a bottoming market, it is often more profitable to find the market bottom with Candlesticks. Technical analysis with tools such as Candlestick stock charts is useful in spotting new market trends and market reversal. If a trader or investor is looking to profit from a market turnaround he will do well to find the bottom with Candlesticks and trade or invest accordingly. It is fine to talk about finding bargains in a down market but just how long will the market be down and how long will a given stock be ignored by the market? Both fundamental and technical analysis are necessary in both short term trading and long term investing.

2. As the Euro sovereign debt bailout
regains life and another economic
stimulus package is on the horizon it
may be time for traders to find the
market bottom with Candlesticks.

3. Two things drive stock and stock
market prices.

4. These are the fundamentals of the
economy and individual stocks on
one hand and market sentiment on
the other.

5. In both trading and long term
investing, margin of safety and
intrinsic stock value are good
measures of the value of a stock.

6. What may look like a promising stock
with a low price to earnings ratio may
be underpriced as regards forward
looking earnings but market
sentiment may be such that the stock
remains inactive and underpriced.

7. Market sentiment is the composite
action of everyone from the day
trader to one who only engages in
buy and hold investing.

8. While fundamental analysis helps
spot hidden stock value in a
bottoming market, it is often more
profitable to find the market bottom
with Candlesticks.

9. Technical analysis with tools such as
Candlestick stock charts is useful in
spotting new market trends and
market reversal.

10. If a trader or investor is looking to
profit from a market turnaround he
will do well to find the bottom with
Candlesticks and trade or invest
accordingly.

11. It is fine to talk about finding bargains
in a down market but just how long
will the market be down and how long
will a given stock be ignored by the
market?

12. Both fundamental and technical
analysis are necessary in both short
term trading and long term investing.

13. However, it is with Candlestick
analysis that smart traders are often
able to spot when the market is going
to turn and profit from buying at the
bottom.

14. To find the market bottom with
Candlesticks, either for the market in
general or for individual stock prices,
traders follow stock price patterns
and their representations as easy to
read Candlestick signals.

15. A commonly useful signal is the Doji
Candlestick.

16. This Japanese Candlestick signal
indicates market indecision.

17. It is useful in predicting a market
rebound or a correction in an
ascending market.

18. The Doji is a very short to virtually flat
candlestick with long upper and lower
tails.

19. It tells us that the market opened and
closed on a stock at nearly the same
price but that the market tested both
higher and lower during the trading
period.

20. This signal often precedes a
breakout.

21. It is not especially useful in a flat
market as it does not tell us in which
direction the stock market or
individual stock will move but in an
upward or downward trending market
it commonly warns the trader of a
turnaround.

22. In a falling market it is a way to find
the market bottom with Candlesticks.

23. After a recent sell off took two and a
half trillion US dollars of value out of
the markets many are predicting that
the market has hit bottom.

24. The smart stock investor or stock
trader will not rely upon the pundits.

25. He will work to find the market bottom
with Candlesticks and profit thereafter
with Candlestick trading tactics.