Hi palefrost 
I'm glad you found my post useful. I'll tell you a secret. Most new traders will usually discard what I just posted and will continue to look for magical indicators. You are on the right track!
First let me begin with answering your questions. Do not buy just because its low. You need to understand where key levels of support is. You also need to understand price acceptance vs price rejection.
Picture the financial market as ebay. If there is alot of supply for one product, the sellers will not receive high bids. If there is only 1 or 2 of the same item posted, bidders will race to bid up the price. Simple law of supply and demand.
The market is an auction. Price moves in brackets. This bracket can be as narrow as a few points (few cents) or as wide as a 20 - 40 points ($1-3 for example). Once this level is broken, it will travel into a new zone. Picture boxes on top of each other. Once price breaks the ceiling of the first box, it will enter the second box. Once it breaks the ceiling of the second box, it will enter the third box. And so on...
You may find price going up and down inside one single box. This is also called consolidation. When prices go from one box to the next.. this is called a trend.
Now let me explain price rejection vs price acceptance. Let's say price enters box #4. However price is rejected and pushed back into box #3. This is a good sign that prices will not trade above box #3. This is because sellers believed prices to be too high in box #4 and returned it back to value. In this case value is equivalent to box #3. This is where price is accepted and perceived to be fair between both the buyers and sellers. When either the buyer or seller decides to show more confidence, they will then move price into a box where value or market balance is found.
This is the basic concept of the markets. 95% of all traders do not understand this concept. 95% of all traders fail. By understanding market acceptance vs market rejection, there is absolutely no need to use any technical indicators.
Take a look at my thread. I posted a good picture of today's action.
"Do you mean, watch who else is buying the stock more?"
Footprints are always left in the markets by the big boys. This can be seen by simply watching the tape or analyzing volume. Tape reading or time of sales is the hardest skill to learn in trading. It will be beyond the scope of this thread to explain tape reading.... perhaps I will post a trading video on this topic.
One important note though: Floor traders and day traders do not move price. Other time frame buyers and sellers move price. This is who you need to be watching for.Other time frame participants can also be referred to as: hedge funds, institutional orders, Soros, Buffet, etc... Basically the big players of the game. They will either come into the market during the morning session or the afternoon session. You hardly find them stepping in during lunch hours.
Try studying market profile. This will give you a better idea on what I am talking about. If you have any questions feel free to ask me. Hope this helps.
