question on "buy" & "sell" indicators

[chuckakers]

I'm new to rule 1 investing and so far I like the strategy. I also like the rule 1 analyzer at stock2own.com. It really takes the work out of the numbers aspect of finding rule 1 companies and MOS pricing.

Maybe someone can help answer a question. According to that site, there are buy and sell signals given by 3 things, and here's a quote from the site:


The Three Tools are: Moving Average, Stochastics and MACD.
Phil Town says: When all three Tools are saying "buy", it is time to get in. When all three are saying "sell", it is time to get out. YES, WAIT FOR ALL THREE TO GIVE THE SIGNAL.

What exactly am I looking for in these three criteria?

Also, I love the idea of buy and sell indicators, but would like a "green or red" from the analyzer, rather than a statement telling me to "wait for all 3 to give the signal" without actually giving me the signal itself. Is there an "easy" way to get those indicators?

Help please?

Chuck

[bovverd]

Originally Posted by chuckakers

I'm new to rule 1 investing and so far I like the strategy. I also like the rule 1 analyzer at stock2own.com. It really takes the work out of the numbers aspect of finding rule 1 companies and MOS pricing.

Maybe someone can help answer a question. According to that site, there are buy and sell signals given by 3 things, and here's a quote from the site:


The Three Tools are: Moving Average, Stochastics and MACD.
Phil Town says: When all three Tools are saying "buy", it is time to get in. When all three are saying "sell", it is time to get out. YES, WAIT FOR ALL THREE TO GIVE THE SIGNAL.

What exactly am I looking for in these three criteria?

Also, I love the idea of buy and sell indicators, but would like a "green or red" from the analyzer, rather than a statement telling me to "wait for all 3 to give the signal" without actually giving me the signal itself. Is there an "easy" way to get those indicators?

Help please?

Chuck

Read ALL the posts in the technical analysis message board on this site. Then you will understand the three tools enough to be able use them.

Whilst your reading them - go and find the beta charts on yahoo finance and play around with them, put some of your watchlist stocks in and look at the historical chart triggers that occured. Play around with them so you know how they work yourself and dont rely too much on one website because if that website were to cease to continue you need to know you can continue with the process.