Some trades feel effortless…
It’s like you spotted the surge before it even happened.
And others can leave you wondering what went wrong.
The difference often comes down to recognizing a few subtle clues the market gives you before making its next big move.
And speaking of big moves, have you seen the massive stock runs that show up on Monday mornings?
Find them and trade them with my Monday Setup…
Haven’t heard about it yet? Listen up!
Every Monday, the market kicks back into gear after a weekend of rest… And that reset creates a unique opportunity!
Right at 9:30 am Eastern, as the opening bell rings, we look for a very specific pattern that often shows up like clockwork.
And it has delivered some incredible wins!
Look at last Monday…
Equillium Inc. (NASDAQ: EQ) had a morning run of 155%* after announcing a large capital infusion.
These are the kinds of morning spikes we hunt for every Monday!
Want to learn how to spot them for yourself?
Watch the video below for the full trade breakdown and strategy tutorial for my Monday Setup.
To find big price action at other times, you have to learn to read those subtle signs the market is giving you. Once you learn to read them, you can approach each trade with more clarity, confidence, and control.
The best part?
Table of Contents
Mastering Buy and Sell Indicators
One of the biggest challenges new traders face is understanding when to buy and when to sell.
Finding a ticker is easy — maybe you see it in a scan, hear it from a friend, or spot it on Twitter — but knowing exactly when to enter, take profits, or stop out is where most traders struggle.
Today, I’ll walk you through the essentials of buy and sell indicators, explain how to use them without getting lost in jargon, and show you how to build smarter, more disciplined trading plans.
What Are Buy and Sell Indicators?
Buy and sell indicators are tools traders use to identify potential entry and exit points. They’re often visual cues on a chart that highlight possible turning points in the market based on factors like price movement, volume, or momentum.
Used correctly, they help you:
- Spot high-probability opportunities.
- Avoid bad entries and exits.
- Create a clear trade plan before you click “buy.”
To get started, you’ll need a great trading platform…
Don’t have one yet?
My top pick is StocksToTrade.
With advanced charting, customizable indicators, alerts, real-time data, and more, STT has everything you need to stay ahead of the game, all in one place.
Get two weeks of both the STT platform and our Breaking News Chat service for $17.
Grab your 14-day StocksToTrade + Breaking News Chat trial today for only $17.
Once you have your platform and your stock, you can apply the indicators to your chart and analyze the signals for potential entries and exits.
Keep It Simple
New traders often overload their charts with indicators. Don’t do it. Too many indicators can cause confusion and hesitation.
Start with a few clear, reliable ones.
VWAP:
One of my go-tos is Volume Weighted Average Price (VWAP).
VWAP blends price and volume to give a clear average price for the day.
Below is a two-day chart of the S&P 500. VWAP is the line overlaid in white.
SPY 2-Day, 5-Minute Candles Chart; SteadyTrade
Read my blog post to learn more about VWAP.
VWAP can also guide your exits. If the stock pulls back and breaks down through VWAP with rising selling volume, that’s often a sign the buying momentum is gone.
On the flip side, if it breaks to the upside through VWAP with strong volume, the uptrend could continue.
Red Candle Theory:
This is one of my favorite approaches for timing entries and exits. Instead of zooming into noisy one-minute charts, use five-minute candles to spot key support, resistance, and momentum shifts.
RCT forces you to wait for momentum confirmation before making an impulsive buy decision.
Learn more about the RCT here.
Breaking Resistance:
When a stock pushes above a level it previously failed to break, it’s considered a resistance breakout, which is often a strong bullish signal. Confirm the move with above-average volume for more conviction.
Keys to Success with Indicators
Plan before you trade. Know your entry, stop-loss level, and target price ahead of time to keep emotions out.
Confirm with volume. High volume = higher conviction. Avoid low-volume breakouts.
Adapt as you go. Over time, you’ll find certain indicators fit your style better than others.
Practice first. Use paper trading to build your skills.
On top of its other pro features, the StocksToTrade platform also includes a paper trading environment so you don’t have to risk your own capital while you learn a new strategy.
My Final Thoughts…
No indicator is perfect… Sometimes trading can be more of an art than a science.
Use them as part of a broader analysis to make informed decisions, not as a magic signal. Start simple, refine as you gain experience, and remember that trading isn’t just about making profits — it’s about protecting your capital.
The more you understand your buy and sell signals, the more confidence you’ll have in your trades, and the better your chances of building a disciplined, profitable trading journey.
If you’re serious about leveling up your trading skills, check out our FREE live StocksToTrade webinars.
These sessions are 100% live, fully interactive, and give you the chance to see the system and indicators in action in real time. There’s no better way to sharpen what we’ve talked about than by watching a skilled trader apply these tools in a live market environment.
Register now for a session. I hope to see you there!
Have a great day, everyone. See you back here tomorrow.
Tim Bohen
Lead Trainer, StocksToTrade
P.S.
Low-float stocks are perfect for day trading. What about stocks with higher floats?
Warning: This kind of trading can quickly blow up your account.
Learn more about the StocksToTrade platform and everything it can do.