The good Doctor Ron Sen just wrote up a little something on sell signals. He lists six technical analysis based selling criteria complete with examples of current stocks matching each criterion. His six criteria are:
- Persistent fall below critical moving averages (well-watched moving averages) – an Investors Business Daily tool
- New high on light volume
- Reversal patterns (e.g. Connors undeniables, 6 week high with close below the open for the week)
- Break of major trendline.
- Weinstein Stage 3 or 4 stocks.
- Falling Relative Strength
Another great list of selling signals/rules can be found in William O’Neil’s ‘How to Make Money in Stocks’. Chapter 10, ‘When to Sell and Take Your Profit’, lists at least 36 things to look out for as well as 8 rules for when you should be patient and hold on to a stock.
I have a few more things on selling posted on my site from Stan Weinstein.
http://knighttrader.blogspot.com/2005/06/stan-weinsteins-donts-for-selling.html
Gekko
It is interesting to note that O’Neil combines his rules on when to sell with an emphasis on starting with an entry at the “correct” point. Here is one of the better quotes Chapter 10 offers: “Your objective is to buy the best stock with the best earnings at exactly the right time and have the patience to hold it until you have been proven right or wrong.”