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.

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.