Trading signal
A rule that says when to buy or sell, such as 'buy when the 50-day average crosses above the 200-day'.
In plain English
A signal turns a chart pattern or an indicator into a yes or no decision. It only has value if acting on it beats acting at random.
Uncle Gary explains
Uncle Gary's signal for rain is his knee hurting. To know whether the knee works, you also have to count how often it hurts on dry days.
Why it matters for your money
We test every signal against a random stock on the same day. Most famous signals don't pass.
Where we tested it
Related terms
All glossary terms. Educational content, not financial advice.