Chart Check: Key sell signals you should be aware of while trading

While considering a larger outlook, one needs to look at signals wherein the change in trend holds over a month or a quarter.

One needs to examine several elements in order to determine a negative reversal, or a 'sell signal', for a stock or index. The most relevant is the price movement, followed by price indicators like candlestick patterns, chart formations, moving averages, trend line, gap up or gap down, etc.

Apart from the above-mentioned instruments, technical indicators like Relativem Strength Index (RSI), Moving Average Convergence Divergence (MACD), and Stochastic also assist in identifying the trend reversal. Volume plays a crucial role in acknowledging the change in momentum.

When considering a larger outlook, one needs to look at signals wherein the change in