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Indicators for Determining When to Buy or Sell Stock

Knowing when to buy or sell a stock, index, or etf fund is the critical investment information needed to give you an edge in your trading and investing success. We will go over several important stock buy/sell indicators that can help guide you into financial success. A stock buy or sell flow chart is something to seriously consider once you start monitoring several indicators to help make the best decision before you make a critical stock buy or sell decision. You will need simple triggers to tell you when the buy or sell criteria has been met for each technical indicator you have in your stock monitoring database.

One indicator that is often overlooked is the moving average breadth charts for the major indexes; Dow Jones Industrials, Nasdaq, and AMEX. Keep in mind that the DOW is only a monitor of 30 companies, most people don't realize there are so few companies that make up the most important index people look to for direction.

The below Buy or Sell Indicators are not in any order of best or worst. Different people prefer to weight each indicator in their own personal way, but #18 & #19 economy indicators are very important to everyone investing.

Stock Buy/Sell Indicator #1 - The basic daily candlestick chart which monitors a couple months of daily price movement for your stock or fund. There should be 50 and 200 day moving average lines that overlay your stock chart data.

Stock Buy/Sell Indicator #2 - The basic weekly candlestick chart which monitors a couple years of daily price movement for your stock or fund. There should be a 40 week moving average line that overlays your stock chart data.

Stock Buy/Sell Indicator #3 - Monitoring Point and Figure Charts or P&F for down leg or up leg and for double or triple breakouts. Point and Figure Charts use the X for the graph bar when the stock continues increasing in price. The O is used when the stock price is decreasing in value. When the latest X barline breaks through the previous X bar this can be a strong stock buy indicator, the opposite is true for the O bar. Example chart for DOW at the bottom of the page.

Stock Buy/Sell Indicator #4 - Volume, Volume+, on Balance Volume. Monitoring Stock Trading Volume is a good buy sell indicator, when the stock moves in one direction with increased volume this usually indicates the overall price direction will continue for the short period.

Stock Buy/Sell Indicator #5 - Volatility Index (VIX), you can also get data from CBOE. The higher the volatility the more movement the stock market will have, this indicator will usually help in determining to day trade or hold for a longer time.

Stock Buy/Sell Indicator #6 - CMF, Chankin Money Flow - Indicator uses price and volume for determining the direction of the graph, when the line is going up this can be a buy indicator, when the line is going down this can be a sell indicator.

Stock Buy/Sell Indicator #7 - MACD, Moving Average - This is one of the most popular technical indicators for determining when to buy or sell a stock. This indicator uses moving averages for determining the line graph direction.

Stock Buy/Sell Indicator #8 - Slow Stochastic - This stock trading indicator uses the momentum of a stock to determine the direction of the line graph. When the line is increasing this can be a stock buy indicator, when it is decreasing this can be a sell indicator.

Stock Buy/Sell Indicator #9 - Advance/Decline issues for each major index, Breadth Charts

Stock Buy/Sell Indicator #10 - New Highs/New Lows Charts for overall market sentiment, this is a great contrary indicator (Contrarian Investor).

Stock Buy/Sell Indicator #11 - Double Bottom or Double Top stock price pattern.

Stock Buy/Sell Indicator #12 - Cup and Handle stock price setup.

Stock Buy/Sell Indicator #13 - Commodities can also show the beginning stage of money rotation.

Stock Buy/Sell Indicator #14 - The TRIN can be used to spot an early direction change in momentum. There is a NYSE TRIN and a Nasdaq TRIN.

Stock Buy/Sell Indicator #15 - World Markets can be a good early buy/sell indicator.

Stock Buy/Sell Indicator #16 - The Fibonacci Numbers ratio or percentages are widely used in determining when to buy or sell. They are basically the 38.2%, 50%, and 61.8% retrace points from any min/max stock price.

Stock Buy/Sell Indicator #17 - Copper can be used as a stock market buy/sell indicator. Some people refer to it as Dr. Copper due to it tracking the manufacturing industry direction. It makes sense when you think about it, the more production the more materials needed. Here is a link to Copper Charts and other metals for tracking/correlation.

Stock Buy/Sell Indicator #18 - Railfax for monitoring rail traffic car loadings, this will correlate to the economy very well and can be used as a long term buy/sell indicator. The more goods being transported through rail traffic the more things being bought and sold. Link to the Railfax site, it takes about 10 seconds to load all the data charts.

Stock Buy/Sell Indicator #19 - Baltic Exchange Dry Index Charts can be used for monitoring shipping cargo being transported, this is very similar to the Railfax and can be used in conjunction for early signals on the economy direction. Definition of Baltic Exchange.



Purchase Technical Buy and Sell Market Indicators DVD:
A 4-Step System for Screening the Markets: Integrating Technical Timing with Fundamental Indicators for Superior Stock Selection (DVD) with Marc Gerstein

Purchase Technical Market Indicators Book:
The Encyclopedia Of Technical Market Indicators, Second Edition

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