Buy Signal

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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.
Search results for

'Buy Signal'

  • Asset Outflows: A Contrarian Buy Signal

    http://stocks.investopedia.com/stock-analysis/2010/Asset-Outflows-A-Contrarian-Buy-Signal-SPY-OEF-VGK-VBR-IWC0302.aspx
    ... Asset Outflows: A Contrarian Buy Signal. ... When investors pull money out of the stock
    market in vast quantities it is often a contrarian signal to buy. ...

  • Stochastics: An Accurate Buy And Sell Indicator

    http://www.investopedia.com/articles/technical/073001.asp
    ... The strong buy signal in early April would have given both investors and traders
    a great 12-day run, ranging from the mid $30.00 area to the mid $50.00 area. ...

  • Testing Point-And-Figure Patterns

    http://www.investopedia.com/articles/trading/07/point-figure.asp
    ... double bottoms (Figure 1). A double top buy signal occurs when a column of Xs, which
    are used to note rising prices, exceeds the top of the previous X column. ...

  • Momentum Trading With Discipline

    http://www.investopedia.com/articles/trading/03/092403.asp
    ... At this time, a strong buy signal is issued and you should enter a long
    position and stay with it until the buy signal disappears. ...

  • Schaff Trend: A Faster And More Accurate Indicator

    http://www.investopedia.com/articles/forex/10/schaff-trend-cycle-indicator.asp
    ... The STC Indicator generates its buy signal when the signal line turns up from
    25 to indicate a long or turns down from 75 to indicate a short. ...

  • The Advantage Of Intermarket Analysis

    http://www.investopedia.com/articles/technical/04/012104.asp
    ... On Oct. 2, 1998, the Hang Seng Index generated a buy signal, but the SOXX
    didn't emit a signal until the following week. This means ...

  • A Glance At An Equilibrium Chart

    http://www.investopedia.com/articles/technical/04/072104.asp
    ... Normal Signals - A normal buy signal occurs when the Tenkan-Sen crosses above the
    Kijun-Sen from below. A normal sell signal occurs when the opposite occurs. ...

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

    http://www.investopedia.com/articles/technical/04/020404.asp
    ... signals. The last buy signal was given in Nov 2003 and the system was still
    long when our test was concluded at the end of Jan 2004. ...

  • Surf's Up With Filtered Waves

    http://www.investopedia.com/articles/trading/08/filtered-wave.asp
    ... Advertisement - Article continues below. Figure 1: A wave. In Figure 1, the buy
    signal occurs when the price moves above the previous high. ...

  • Market Reversals And How To Spot Them

    http://www.investopedia.com/articles/technical/04/031004.asp
    ... Figure 1 – Daily Nasdaq Composite chart showing a 20-bar rolling
    inside/outside reversal sell signal followed by a buy signal. ...

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