How to determine the right time to buy stocks?

If a Stocks is in the down trend, but the Momentum indicatiors (like Stochastic, RSI and MA) generate buy signal in some interval of time due to
oversold position. we required your guidance on the following points:
1) How to determine the right time to buy stocks?
2) How to find out the down trend is over or price reversal?
3) Please Suggest us some good technical indicator to overcome the above issues.

It’s totally depends on the timeframe of the downtrend,if we are talking about the stocks is in a downtrend and daily charts,it means thats making lower pivot highs and lows, and the momentum indicators on that daily charts tells you it’s oversold, So what is right time to buy ? … The right time to buy stocks would be if we make a higher pivot low and when you get confirmation once a previous pivot high is taken out. So always remember the important thing is PRICE,PRICE and PRICE.

Second question is answered by the answer to first question as above.

Does there any good technical indicator availiable to overcome these problem?

No …..Always stay with price, pivots and trends. An indicator may at best confirm to you what you should already be knowing.

For eg. We have a strong uptrend technical indicators which usually tell us that we are overbought, what do we do with that?  Nothing!

We hold……The uptrend gets stronger and stronger. The indicators continue to be overbought. We Hold….. Now we start breaking previous pivots, We Sell, whatever the indicators tell us.

My suggestion: Learn Market Trends, Pivots and Chart Patterns…..then always go with the flow of the trend. But keep learning about the various indicators. Because they may come in handy in shorter time frames.

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