Favero Buy and Hold

Indicator Description

Opportunity Identification Indicator — Smart Money

This indicator was developed to assist in identifying moments when prices may be reaching areas of greater interest, seeking possible signals in market behavior associated with the concept of “smart money” (Smart Money), widely discussed in financial literature and market studies.

The proposal is to create a bridge between technical analysis and fundamental analysis.

The indicator uses technical analysis and price behavior to help users locate areas that may warrant further investigation. From these areas, users can complement the analysis using their own fundamental analysis criteria, such as valuation, financial results, growth, dividends, debt levels, cash generation, or any other factors they consider relevant.

The Union of Two Worlds

Technical Analysis + Personal Fundamental Analysis

The central idea is not to replace fundamental analysis, nor to claim that a particular asset is necessarily cheap.

The objective is to make it easier to identify chart areas that may justify deeper analysis.

In this way:

1. The indicator identifies an area of interest on the chart.
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2. The user analyzes the price and market context.
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3. The user applies their own fundamental analysis.
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4. With both analyses aligned, the user evaluates whether there is an opportunity compatible with their strategy.

The indicator does not determine an asset’s fair value. It seeks to help users find price areas that deserve further study.

System Philosophy

The proposal is simple:

“The chart helps identify the timing. Fundamental analysis helps decide what is being purchased.”

This fits very well with the Buy and Hold / Long Only philosophy you are developing for your project, because the indicator can serve as a tool for locating potential areas of interest for long-term analysis, without turning the indicator into a promise of returns or a reversal signal.