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 ...
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First Published: Thu, April 09 2020. 08:59 IST
