Frequently Asked Questions
What is Green Signal Stocks?
Green Signal Stocks provides you with a price forecast for your stocks for 12, 24 and 48 day holding periods. This forecast is based on identifying patterns of buying and selling stocks from historical data. The method used is known as pattern recognition, which enables us to identify, for each stock, purchasing patterns that are hidden from the naked eye, and estimates the probability that such patterns will continue in the future.
For each of your stocks you will receive 4 simple recommendations: BUY, OVER BOUGHT, OVER SOLD and SELL. Choose to enter stocks one at a time or create your own portfolio and watch the forecasts from the model update automatically. As forecasts from your portfolio change, for example, from hold to sell, or from buy to sell, the updates will be forwarded to you via e-mail.
How do I know when to BUY a Stock?
BUY a stock when one or all of these conditions are met:
- The program gave a BUY signal.
- The short term volatility for a downward correction (red arrow down) is equal or less than 0.95. A volatility of 0.95 or higher suggests that a short term correction is expected. It is advised to wait for a correction before you buy the stock.
- The % accuracy for the holding period (12, 24 or 48 day holding period) is 70% or higher and looking at the historical prediction, the model produced profit for an average transaction for a given holding period.
How do I know when to SELL a Stock?
Sell a stock when any of these conditions are met:
- The model recommends to SELL the stock.
- You have reached your profit target.
- The model provides an OVER BOUGHT recommendation.
- The short term volatility for a downwards correction (red arrow down) is high (e.g. >=.95). (Use this rule to realize short term profit.)
Should I BUY a stock when the stock is OVER SOLD?
An OVER SOLD condition will give you an opportunity to buy the stock at a relatively low price but by doing so you also increase your risk. Your decision should be based on market conditions (e.g. do not buy an OVER SOLD stock if the previous recommendation was a SELL). Buy a stock in an OVER SOLD condition only when the recommendation prior to the OVER SOLD recommendation was a BUY. You can learn this from the historical predictions.
Should I consider the volatility measure in my investment BUY And SELL decisions?
The volatility is a powerful proprietary measure that Green Signal Stocks has developed. It measures the degree of stocks being OVER BOUGHT or OVER SOLD. As the stock rises in price, the risk of the stock going down in the short term increases (red arrow pointing down). Similarly, when the stock declines or is OVER SOLD, the likelihood that the price will rebound or increase in the short term increases (green arrow pointing up). When the volatility is >95% down, it is a good time to take your profit or even short the stock. As well, if the stock significantly declined in price and the volatility is >95% up, then the stock is expected to rebound. It is advised to use the volatility measure in conjunction with other rules previously discussed when BUYING and SELLING a stock.
Should I study the past historical prediction before I invest?
It is highly recommended that you study past historical predictions (at least the last month but you can go back up to two years). This will give you a good example how the model performed in the past on the stock that you plan to BUY or SELL. The study of historical predictions will show you how the model switches over time from a BUY to OVER BOUGHT or OVER SOLD to a SELL condition.
How accurate are the forecasts?
Green Signal Stocks will enable you to go back and validate the forecasting model. Please click on historical prediction. For example, let us assume that we wanted to know what the recommendations would have been on March 3, 2005 for the next 30 days. The program will ignore all recent data and will build the model on data up to March 3rd 2005 and will report the % accuracy and average $ gain per transaction. Please consult the summary report for each stock for these statistics.
How can Green Signal Trading fit into my investment strategy?
We hope that you will use these models as a part of your investment strategy. You should continue to complete your own due diligence on each company in which you plan to invest and then use the model to verify your own research and give guidance as to the future direction of your chosen stock.
Where can I get more information and guidance on how to use Green Signal Stocks?
You can send your questions and comments to: firstname.lastname@example.org.
Where can I go if I am having trouble using Green Signal Stocks, accessing or using my account?
If you are having trouble using our web site, accessing your account, or using your account, please contact us at email@example.com.