In an earlier posting, I have customised a multi-indicators trading system that will generate BUY signals upon triggering of certain conditions. Let’s flip the conditions like a mirror and amend the coding to generate SELL signals instead.
Recap of our BUY signals are as follows:
- Price crossover above lower Keltner Channel (20,2.25)
- RSI(14) crosses above 30.0
- RSI(14) was below 30 for the last 5 days
As such, our SELL signals are as follows:
- Price crossover below upper Keltner Channel (20,2.25)
- RSI(14) crosses below 70.0
- RSI(14) was above 70.0 for the last 5 days
Strictly for illustration: the results of technical screening (based on SELL conditions) are as follows:
Let’s take a closer look at some of the stocks as per the screening.
AJI – appears to have met the technical sell conditions. Nevertheless, there were previous instances whereby the stock continues to climb upward despite meeting the triggering sell conditions.
MAGNI– appears to have met the technical sell conditions. In addition to Keltner & RSI conditions, the sell signal appears to be supported by a declining volume as well as negative crossover in MACD. A lot of “free bars” (i.e above the Upper Band).
YINSON – although sell signals have been triggered, the stock has been hovering on the upper band. Nevertheless, the crossover signal of MACD increases the probability in the reversal of trend
A word of caution: SELL signals generated from stocks screening should be always assessed critically. Signals could be just mere random noises. Further background / fundamental research / detailed backtesting is definitely required.
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