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buy signal

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Financial Dictionary

buy signal

An indication provided by a technical tool, such as a bar chart or trading volume, that a particular security or securities in general should be purchased. For example, the achievement by a stock of a new high price on heavy trading volume is often interpreted as a buy signal. Compare sell signal.

Wall Street Words: An A to Z Guide to Investment Terms by David L. Scott.
Copyright © 2003. Published by Houghton Mifflin.
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