
August 31, 2024
Why Timing Your Buy Matters
Deciding when to buy stocks involves thoughtful consideration of economic cycles, market analysis, and sometimes a bit of intuition. Successful traders often seek ways to simplify their process while cutting out the noise by relying on the overall trend of the market.
Remember: 3 out of 4 stocks move with the general market. When the market is trending higher, lean bullish and let the overall direction of the market support your stocks higher.
No matter what the media says, the market dictates the price movement. Your job as a trader is to analyze price movement and decide when to buy.
Buying stocks is a personal endeavor and you must always be aware of the potential risks associated with investing. Although there is never a guarantee in the markets, Deepvue’s Market Navigator Indicator is designed to help you determine the overall market and individual stock’s trend.
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This technical analysis tool uses 10 different buy signals to help you identify potential areas of when to buy stocks.
How the Market Navigator Helps You Decide When to Buy
The Market Navigator incorporates 10 distinct buy signals, each designed to identify entry points for purchasing stocks. By combining multiple buy signals, this tool aims to provide a robust analysis on a single metric.
You can see the Market Navigator Indicator applied to the chart above. At the bottom of the candles are Green arrows indicating when to buy; The red arrows at the top of the candles are sell signals.
When analyzing the health of the market you should always consider the overall direction of the price’s trend. When applied to an index, the Market Navigator helps you determine what to look for when buying stocks.
10 Key Sell Signals in the Market Navigator
Based on Technical Analysis, the Market Navigator uses 10 defined metrics to analyze when the market is in a defined uptrend.
Applying the Market Navigator to Real Trades
This versatile tool can be applied to any index, stock, or ETF in any time frame. You have complete freedom to adapt the tool to your trading style.
Swing Trading: Spotting Early Entry Signals
For Swing Traders, the Market Navigator can be added to your market analysis routine.
When you routinely screen for stocks exhibiting RS during market downtrends, apply the Market Navigar to the index. When the selling pressure is released off the market, the strongest stocks will lead the market higher.
During the Three-Waves-Down correction in the fall of 2023, CRWD was making a series of higher lows. The first Buy signal that appeared on the SPY after the correction was an ideal entry on CRWD.
At the end of the 2022 bear market, finding the right time to buy stocks was a difficult task. The Market Navigator however clued new uptrends with narrowing downtrends. When the market made higher lows and a buy signaled on the SPY, NVDA was set up in an ideal buy position.
After the 2020 Covid Crash, the Market Navigator identified the best time to buy. Coming off its lows, when the buy signal appeared, TSLA was set up in a tight range.
Position Trading: Maximizing Entries for Long-Term Trades
For Position Traders, the Market Navigator can be added to the individual stocks.
Adjust the indicator to individual stocks just as you would on the indices. This tool will trigger multiple Buy Signals to assist you in determining when is the best time to buy a stock or add to your position.
At the end of prolonged downtrends wait for Buy Signals to appear. Before FSLR completed its Stage 1 Base, we saw clues of accumulation followed by a breakaway gap and many more Buy Signals that continue to show add-on points after short consolidation periods.
During NFLX’s 2017-2018 bullish advance there were multiple opportunities to add to your position. If you got shaken out of a core position, the Market Navigator provided more Buy Signals to get back into the stock.
After the 2020 Covid Crash, DOCU was quickly back to all-time highs. The Market Navigator continued showing buy signals throughout the entire trend to help keep you in this winner. Note the lack of signals after it topped.
Customizing the Market Navigator for Your Strategy
Type Market Navigator into the search when you open Indicators & Strategies
Expand the Titles of your Indicators and click on Settings
You can now customize your Buy Signals.
If you want to view the indicator as it was shown above when discussing Navigating The Markets, reduce the Count of Buy Signals to Display.
You can then change the style. Choose which icon to display in addition to above or below the candle.
With the Market Navigator, you have the flexibility to either view a composite ratio derived from all 10 signals or opt to focus on specific signals individually.
When using a Combination of Signals, change the Count to adjust how sensitive the signal is.
For example, If you select a Combination of Signals and have the Count of Buy Signals to Display set to 2, the signal will appear when 2 out of the 10 listed buy signals are met.
When using Individual Signals, select which signals you want on your chart.
In this example we see the green Buy Signal appear when any of the three selected signals are triggered.
Experiment with the differences to find what will work with your style.
Key Takeaways
The majority of stocks follow the general market. When buying stocks, insist that the market has favorable conditions and is in a confirmed uptrend.
Based on Technical Analysis, The Market Navigator uses multiple Buy Signals that help you determine the right time to buy stocks. This tool simplifies the decision-making process by focusing on price movement.
Apply the Market Navigator to indices, stocks, and ETFs on any time frame.
Adjust the Market Navigator to use a combination of the 10 Buy Signals, or focus on just one or a few signals that are supportive of your trading strategy.
By integrating these insights and using the Market Navigator you can enhance your ability to time the market more effectively to find the right time to buy stocks.