Tech indicators to go along with insider buys

[investingphil 10]

Hi,

 

I'm following insider buys and am looking for maybe 3-5 technical indicators to evaluate within a few days of the insider buy, to determine if the security may be a good investment. I'm looking for indicators that will show that there is growth in the security. I'll probably plan to hold with a trailing stop loss in place for my exit strategy.

 

Any suggestions?

 

Thanks,

 

Dave

 

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[MadMarketScientist 11]

my initial inclination is that an insider buy is based on information that won't show up in technical indicators ... indicators are based on price and other market variables ... but the market doesn't have the insider info.

 

MMS

[investingphil 10]

i guess what i am trying to do is narrow the field, so to speak. I can't, nor do I want, to buy every security that insiders are buying, so if i can add some other pieces of the puzzle, maybe I can increase my chances for a win.

 

Dave

[MadMarketScientist 11]

Hi,

 

I understand the want to narrow down the field ... but instead of technical indicators maybe try the following I posted in your other post

 

http://www.traderslaboratory.com/forums/f106/new-investment-tool-idea-9796.html

 

good luck!

MMS

[BlowFish 10]

I would look at some sort of simple break out.The insiders are buying before a potential move. A break out will indicate that a potential move is becoming an actual move. You could use drawn lines around price action or an indicator like keltner or donchian channels.

 

You could also look at Whycokoff area here for discussion about supply and demand and how it manifests itself through price action.Though quite nowadays it is a great archive of W material.