Question

According to market technicians, it is time to sell stock in a head-and-shoulders formation when?

Answer 1

The sell signal is triggered when the price breaks downwards through the neckline heading down from the right shoulder.

What is sell signal?

A sell signal is any indication that a trader should sell an asset. Fundamental or technical analysis is generally used to generate sell signals. Sell signals can be automatic, as with a stop-loss order, or they can simply notify the trader to sell and they must then execute the sell order manually.

The term "strong sell" refers to equities that a sell-side analyst predicts will drastically underperform the general market in the near term. A strong sell rating is a pessimistic recommendation for a stock that the analyst believes investors should avoid in their portfolio.

MACD provides four signals at its most basic level: When the MACD line crosses above the zero line, it indicates a positive trend.

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