Buy Signal

Filed Under » ,
Dictionary Says

Definition of 'Buy Signal'

An event or condition that alerts investors to purchase a particular investment. Buy signals can simply be observed by astute investors and analysts, or they can be indicated by trading software or charts. Momentum traders, for example, might rely on two charts, the moving-average-convergence-divergence histogram and the exponential moving average histogram, for a buy signal.
Investopedia Says

Investopedia explains 'Buy Signal'

Some investors (contrarians, for example), consider it to be a buy signal when large numbers of investors pull out of the stock market. This is because widespread bearish sentiment among investors can indicate a market bottom. When a market is at or near its bottom, it can be a good time for investors to pick up stocks at prices that are lower than their true value.

Articles Of Interest

  1.

    Tips For Investors In Volatile Markets

    Find out what to look out for when trading during market instability.

  2. Introduction To Swing Trading

    This style, between day trading and trend trading, may be a good one for beginners to try.

  3. Double Exponential Moving Averages Explained

    This tweak on moving averages gives traders faster access to the information they need.

  4. Surviving Bear Country

    Stay calm, play dead and keep your eyes open for attractive valuations.

  5. The Short And Distort: Stock Manipulation In A Bear Market

    High-quality stock reports needn't be confused with stock manipulators' dramatic claims.

  6. The P/E Ratio: A Good Market-Timing Indicator

    Check out the returns this newer technical analysis tool would've yielded over the period from 1920 to 2003.

  7. Timing Trades With The Commodity Channel Index

    We introduce how to use this oscillator, which identifies cyclical trends, for determining buy and sell points.

  8. A Primer On The MACD

    Learn to trade in the direction of short-term momentum.

  9. 6 Asset Allocation Strategies That Work

    Your portfolio's asset mix is a key factor in whether it's profitable. Find out how to get this delicate balance right.

  10. When To Short A Stock

    Learn how to make money off failing shares.
comments powered by Disqus
Marketplace
Hot Definitions

  1. Racketeering

    Racketeering refers to criminal activity that is performed to benefit an organization such as a crime syndicate. Examples of racketeering activity include...

  2. Lawful Money

    Any form of currency issued by the United States Treasury and not the Federal Reserve System, including gold and silver coins, Treasury notes, and Treasury bonds. Lawful money stands in contrast to fiat money, to which the government assigns value although it has no intrinsic value of its own and is not backed by reserves.

  3. Fast Market Rule

    A rule in the United Kingdom that permits market makers to trade outside quoted ranges, when an exchange determines that market movements are so sharp that quotes cannot be kept current.

  4. Absorption Rate

    The rate at which available homes are sold in a specific real estate market during a given time period.

  5. Yellow Sheets

    A United States bulletin that provides updated bid and ask prices as well as other information on over-the-counter (OTC) corporate bonds...

  6. Bailment

    The contractual transfer of possession of assets or property for a specific objective.
Trading Center