When To Buy Stocks: 10 Market Navigator Signals

Deepvue
Deepvue

August 31, 2024

8 min read
1098 views

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.

Symbol: SPY
Company:
SPDR S&P 500 ETF Trust
Year: 2024

When To Buy Stocks

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.

  • Crosses Above 21 EMA: This signal is triggered when the price crosses above the 21-period Exponential Moving Average (EMA). Where the current bar closed above 21 EMA while the previous bar closed below 21 EMA.
  • Trending Above 21 EMA: This signal is triggered when the price closes above the 21 EMA for each of the last five periods.
  • Living Above 21 EMA: This signal is triggered when the price closes above the 21 EMA for each of the last 15 periods.
  • Cross Above 50 SMA: This signal is triggered when the price crosses above the 50-period Simple Moving Average (SMA). Where the current bar closed above the 50 SMA while the previous bar closed below 50 SMA.
  • Cross Above 200 SMA: This signal is triggered when the price crosses above the 200-period Simple Moving Average (SMA). Where the current bar closed above 200 SMA while the previous bar closed below the 200 SMA.
  • Low Above 50 SMA: This signal is triggered when the lowest price of the bar is above the 50-period SMA.
  • Accumulation Day: An accumulation day is identified when the closing range of a bar is greater than 50% with a larger volume than the previous bar.
  • Higher High: This signal occurs when the current bar’s high is greater than the highs of the previous 14 bars.
  • Key Reversal Bar: A key reversal bar signal is generated when the stock opens below the low of the previous bar, but rallies to close above the previous bar’s high.
  • Distribution Day Fall Off: This signal is triggered when a distribution day “falls off” the rolling 25 bar period.

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.

Symbols: SPY / CRWD
Company:
SPDR S&P 500 ETF / Crowdstrike Holdings
Year: 2023-2024

When To Buy Stocks

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.

Symbols: SPY / NVDA
Company:
SPDR S&P 500 ETF / Nvidia Corp
Year: 2022-2023

When To Buy Stocks

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.

Symbols: SPY / TSLA
Company:
SPDR S&P 500 ETF / Tesla
Year: 2020

When To Buy Stocks

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.

Symbol: FSLR
Company:
First Solar, Inc
Year: 2022-2023

Market Navigator

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.

Symbol: NFLX
Company:
NetFlix, Inc
Year: 2017-2018

Market Navigator

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.

Symbol: DOCU
Company:
Docusign, Inc
Year: 2020

Market Navigator

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

When To Buy Stocks: 10 Market Navigator Signals

Expand the Titles of your Indicators and click on Settings

When To Buy Stocks: 10 Market Navigator Signals

You can now customize your Buy Signals.

When To Buy Stocks: 10 Market Navigator 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.

When To Buy Stocks: 10 Market Navigator Signals

You can then change the style. Choose which icon to display in addition to above or below the candle.

When To Buy Stocks: 10 Market Navigator Signals

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.

When To Buy Stocks: 10 Market Navigator Signals

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.

When To Buy Stocks: 10 Market Navigator Signals

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.

Frequently asked questions

Timing matters because most stocks follow the overall market trend—about 75% move in the same direction. If the market is in an uptrend, your chances of success increase. The key is to wait for favorable conditions and use technical indicators, like the Market Navigator, to confirm strong entry points.

The Market Navigator analyzes 10 key buy signals based on technical indicators like moving averages, accumulation days, and trend reversals. It simplifies decision-making by highlighting when a stock or index is in a strong uptrend, helping traders find the best time to buy.

Yes! Whether you’re a swing trader or a long-term position trader, you can adjust the Market Navigator to focus on specific buy signals or a combination of multiple signals. You can also modify how sensitive the signals are, making it adaptable to your strategy.

You can use the Market Navigator on individual stocks, ETFs, and market indices across different time frames. It works with any asset that follows price trends, making it a versatile tool for traders.

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