A Buy & Sell Indicator is a technical analysis tool used in trading that helps identify potential entry (buy) and exit (sell) points on a price chart based on market data.
A Buy & Sell Indicator analyzes price movements, volume, and/or other technical factors to generate signals that suggest when a trader may consider buying or selling an asset.
These signals are usually shown on charts as:
- 🟢 Buy arrows or labels
- 🔴 Sell arrows or labels
🔹 How It Works (In Simple Terms)
The indicator uses mathematical formulas based on:
- Price trends
- Moving averages
- Momentum
- Support & resistance
- Volatility
When certain conditions are met, it triggers:
- Buy signal → possible upward movement
- Sell signal → possible downward movement
