Please tell me your most reliable buy/sell stock indicator?

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Please tell me your most reliable buy/sell stock indicator?

Postby Stockwillrise » Mon Jan 25, 2010 6:54 am

i am looking to add some strong indicators to my trading strategy. Please tell me your favorite buy and sell signal indicator and please tell me the time perios u use. Thanks in advance.
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Re: Please tell me your most reliable buy/sell stock indicator?

Postby Jim Z » Tue Feb 16, 2010 6:45 am

I add Mac D and stockastic to my charts. I also look at volume. Volume is most important. If you go to www.clearstation.com and click on MacD and stockastic it will give you a quick tutorial. I also put the Bollinger bands on the chart. Bollingerbands are a great indicator if the stock is at or near its high or low in the present run. MacD and stochastic will tell you when to buy, are if you are chasing a loser.
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Re: Please tell me your most reliable buy/sell stock indicator?

Postby Nathan W » Wed Feb 17, 2010 6:47 am

What I do is use Google finance to create a chart of the Dow and a stock on the same chart. This eliminates the fluctuations of the market overall, and makes it easier to see where a stock is in relation to the overall market. I view these charts on a 1 day, 5 days, and 1 month basis. Some stocks such as XOM tend to come back up or down to where they started in relation to the overall market. Right now, XOM is down 3% from the market, relative to where they both started a month ago. From 5 days ago, it's down 2% vs market. From 1 day ago, it's also down 2% relative to the market. So on a 1day, 5day, and 30 day basis, this stock is undervalued and historically always rises to catch up to the market when undervalued relative to the market.

Using this strategy, now would be a good time to buy XOM stock.This strategy can be applied to other stocks as well, and in reverse when shorting a stock.

Another twist on this strategy is to buy one stock below market (on a 1day, 5day, and 30 day basis) and short another stock which is above market using the same criteria. This protects against losses from swings in the overall market.

At the moment, I'm still learning my own strategies, and do trading on virtual trading sites. If it keeps working, I'll consider investing real money.
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Re: Please tell me your most reliable buy/sell stock indicat

Postby rtaylor » Wed Jul 14, 2010 5:47 am

They tell you in advance which way the market is heading. That's why we're all millionaires.

Regards,

Ross Taylor
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