In plain terms — Before the market moves, analysis says: «if price does X, I buy». When X happens, the signal fires. No feelings, no «I think».
Definition
An action signal is an objective, predetermined criterion that indicates:
| Signal | Meaning |
|---|---|
| Buy | Enter long |
| Sell | Exit / take profit |
| Hold | Stay in position |
| Sell short | Enter short |
| Cover | Close short |
Hurst's philosophy (Ch. 1) requires signals triggered by actual price behavior, not headlines or feelings.
Example — On Friday you draw a valid downtrend line; on Monday the stock opens above the line → buy signal (Screw and Bolt, 6 Nov 1968).
Main types (Hurst)
- Cross of valid trend line (Ch. 4)
- Entry into envelope edge-band or mid-band
- Trailing loss level (TLL) violated → sell
- Half-span MA reversal → hold or target (Ch. 6)