buy signal
Buy Signal
In charting and technical analysis, any condition thought to be favorable to buying. Examples include a double bottom and achieving a new high price in heavy trading volume. See also: Sell Signal.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
buy signal
An indication provided by a technical tool, such as a bar chart or trading volume, that a particular security or securities in general should be purchased. For example, the achievement by a stock of a new high price on heavy trading volume is often interpreted as a buy signal. Compare sell signal.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.