Off the top if my head selling signs ... there prob more If I sit and think about it
1. Break down of uptrend on heavy vol
2. New peak on lesser volume
3. Divergence on RSI/Momentum (don't use this much)
4. Move average downswing
5. Head and shoulders or Double top. (Strong signal)
6. Failed Sym Triangle
7. Rounded Top
8. Broadening Pattern at top (as opposed to a narrowing pattern)
9. Rising Wedge (Weak signal IMO)
10. Trade patterns on depth queue ... bigger dumps and small light buyups manipulation or any detected patternised distribution ie Bots selling and no Bots buying
11. Iceberg Seller present
12. Persistent Cappers
13: FA Story suddenly changes for the worst
14. Too many rampers (Conversely when too many D/rampers its a buy)
15. Jap candlestick Reversal indicators
16. Exponential moving avg Cross
17. Fail to penetrate a key resistance area of a fall through key support area
99. Any combination of the above
i shortermers and @Johnnyknowsbest you asked for TA signs for selling, depends on the timeframe you are operating on, so will assume you mean in the short term timeframe, (couple of days). The signals that I will mention are only meaningful to me because of the type of charts and indicators I use. They may not be useful to others but when I see a chart or one of these signals I will avoid the stock if not already in or get out if holding (unless I can justify it on the basis of one of those bad mkt days, or tin hat days in the general market). Can't really make hard and fast rules because of fundamentals and overall mkt sentiment in play as well.
To put my rules in context, I usually only trade uptrending stocks, pullbacks etc in uptrends, or stocks range trading and/or primed for breakout. Also follow stock cycle/stage theory (Weinstien), always know where my stock is in longer term and timeframe. Also watch s/r levels, lows, highs and tests, use bollinger bands and candles.
1. after an advance any quick runups, cuminating in spikes, any spike highs, unable to hold highs nr highs at eod
2. exhaustion gaps, gaps down (of course)
3. warning candles; dark cloud cover, bearish engulfing candles, any huge down day candle closing on low, wide ranging days that close on lows (all within the context of surrounding candles and trend),tweezer tops
4. any candle closing completely outside the top bb is usually ready for a pullback to midpoint
5. pullbacks that go down thru support
5. numerous advancing days after a breakout, often requires breather, or retracement.
(A few examples to check VRI down candle 6/10; ADR doji unable to hold high 19/12; FMS how many more up days?current; RMX gapped up could hold highs 29/11 (sell and buy back or hold?timeframe?)
Just a selection, no rules are infallible, find what suits your style, and one signal in the whole tech picture is not enough. Context very important. Keep it simple - but its not THAT simple. And things could change in an instant, nothing beats watching current action.
