setups
Basic Sell Signals - What to Look For?
The following shows a brief overview of shorting signals in a downtrend. The setups resemble buying signals in an uptrend. There are, however, subtle differences. The below figure illustrates three key shorting signals.
Read them like this:
- The breakdown from support.
- The breakdown after the stock rebounds to resistance (supply), then drops back into its downtrend.
- The add-to-position point for position traders. Here, the price collapses below the previous pivot low, or support.
