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Buy Indicators

Pivot Lows

  • Pivot Lows

  • Pivot Low Confirmed

  • Moving Average Cross Ups

  • Relative Strength Index Oversold

  • Bottom Triangles

  • Double or Triple Bottoms

  • Bolters (Swing Trading)

  • Rising Trends

  • Retracements

A Pivot Low is a simple pattern on a stock chart that marks a temporary bottom, or a short-term price reversal from down to up. Think of it as a "V" shape formed by three price bars (candles) in a row:

• The Bar on the Left: The price is falling, but its low is higher than the very bottom.

• The Centre Bar (The Pivot): This bar records the absolute lowest price of the whole formation. This is the moment the sellers gave up.

• The Green Bar on the Right: The price is now rising, and its Close is higher than the Centre Bar's high. This confirms that the selling pressure is over, and the buyers have stepped in.

PVL 13dec.jpg

Pivot Low Confirmed

A Pivot Low Confirmation, in Technical Analysis, is where the price closes above the high of the bar that formed the lowest point (the Pivot Low). It is used to signal a definitive and confirmed reversal of the downward trend, as it demonstrates significant buying pressure breaking through immediate resistance. Can you spot the anomalies in this AI generated image? Only the second green bar confirms the PVL.

PVLHigh 13dec.jpg

  • Pivot Lows

  • Pivot Low Confirmed

  • Moving Average Cross Ups

  • Relative Strength Index Oversold

  • Bottom Triangles

  • Double or Triple Bottoms

  • Bolters (Swing Trading)

  • Rising Trends

  • Retracements

Moving Average Cross Ups

This is a Bullish Crossover, which is often interpreted by traders as a strong signal that the market momentum is shifting from falling (bearish) to rising (bullish).

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• Falling Trend Confirmed: The 15-day Moving Average (Purple line) was trending downwards, confirming the existing falling trend.

 

• Initial Up Signal (Closing Price > 5-Day MA): When the Closing Price (blue line) crossed above the short-term 5-day MA (yellow line), it indicated that the stock's current momentum had become positive relative to its very recent average.

 

• Strong Confirmation (Closing Price > 15-Day MA): When the Closing Price (blue line) then crossed above the longer-term 15-day MA (purple line), it provided a strong confirmation that the shift in momentum is significant enough to overcome the medium-term average trend.

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This configuration strongly suggests the beginnings of an uptrend in the stock's price.

Can you spot the three current Pivot Lows? Another strong signal

MA crossovers.png

RSI Oversold

  • Pivot Lows

  • Pivot Low Confirmed

  • Moving Average Cross Ups

  • Relative Strength Index Oversold

  • Bottom Triangles

  • Double or Triple Bottoms

  • Bolters (Swing Trading)

  • Rising Trends

  • Retracements

A classic oversold and recovery pattern on an RSI chart would look like this:

  • Oversold Entry: The RSI line drops below the 30 (or chosen) oversold level, indicating heavy selling pressure.

  • Oversold Condition: The RSI line stays in the area below the horizontal dotted line at 30 for some period, confirming the oversold condition.

  • Recovery Signal (Buy Signal): The RSI line moves back above the 30 level. This move is often interpreted by traders as a signal that the selling pressure has eased and a potential price rebound or upward recovery is starting.

RSI over sold 20dec.jpg

Bottom Triangles

  • Pivot Lows

  • Pivot Low Confirmed

  • Moving Average Cross Ups

  • Relative Strength Index Oversold

  • Bottom Triangles

  • Double or Triple Bottoms

  • Bolters (Swing Trading)

  • Rising Trends

  • Retracements

A BottomTriangle is a bullish reversal pattern at the bottom of a prior downtrend.

The chart shows:

  • Prior Downtrend: The asset price is in a clear decline.

  • Consolidation: The price enters a period of contraction, forming lower highs (top line) and higher lows (bottom line).

  • Bullish Breakout: The price breaks convincingly above the downward-sloping resistance line (top line), signaling the reversal and the start of a possible new uptrend.

bottom triangle17dec.jpg

Double or Triple Bottom

The formation and completion of a Triple Bottom pattern carries strong implications for a potential uptrend:

  • Bullish Reversal Signal: The repeated failure (three times) of sellers to push the price below the established support level signals that the bearish trend is likely ending. This marks a critical turning point where the balance of power is shifting.

  • Confirmation of Support: The three lows reinforce the strength and psychological significance of the support level, providing a strong base from which a new rally can launch.

  • Breakout and Trend Reversal: The pattern is confirmed when the price breaks decisively above the neckline (the resistance level formed by the intermediate highs). This breakout, ideally accompanied by a significant increase in trading volume, is the definitive signal that the reversal is complete and a new, sustained uptrend is beginning.

triple bottom 17dec.jpg

  • Pivot Lows

  • Pivot Low Confirmed

  • Moving Average Cross Ups

  • Relative Strength Index Oversold

  • Bottom Triangles

  • Double or Triple Bottoms

  • Bolters (Swing Trading)

  • Rising Trends

  • Retracements

Bolters (Swing Trading)

If we want to trade fast moving stocks we can rank them by gains from today and monitor what happens over the next couple of days. Trading stocks and shares with a time frame of 2 to 7 days is called Swing Trading.  Swing traders are like "hurdlers." They are looking to capture a specific "swing" or price move from a Pivot Low that takes several days to develop, often jumping over the "hurdle" of the market close each night carefully monitoring Sell signals.

bolters.jpg
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