Buy Signal

Buy signals aren't necessarily set signals...they are events or conditions that act as alerts to investors that it might be a good time to buy shares.

These signals can include most anything...large portions of a particular share being sold, the price dipping to a certain range, etc. Software can monitor and chart the prices in real-time, saving the investor from having to check and compare prices manually.

For instance, you could set your program to chart the prices and show when the stock breaks out of its resistance area. (The resistance area is the range the stock has been hovering at with no real loss or improvement.) When it breaks out of that area, the software could send you a notice.

It's not just numbers on a chart, though. Some analysts rely on more, well, casual indicators...such as when you hear a particular company in the news. Assuming they're in the media for a good reason, often the most visible company in media will be the most visible in the stock market. This is because people hear the name on the news, research the company a bit further, find more good coverage from recent days, and buy it because this company is the belle of the ball and everyone likes to be on the bandwagon.