Like the UTURN
(BUY) signal in a Bear market, U-TURN (SELL) signal is equally powerful to indicate a
change in trend when a stock is going strong and is making new higher prices (in a Bull
market). All of a sudden in a Bull trend the stock puts up a disappointing down day and
surprises most people. Many people think this as just a Reaction and expect the stock to
resume its continued ascending movement soon; but it does not happen most of the time
when the reversal conditions of the U-TURN (SELL) signal are met.
Here are the conditions for the U-TURN (SELL) signal with Bearish implications in a Bull
market. Please note that the signal discussed here takes place when the stock is in a uptrend
(Bull market) but the signal actually indicates that the stock is about to enter into a Bear
market or a down trend.
Key Points to remember: Current Trend- Up. Strong Open. Strong Bear Day. Increase
in Volume.
Conditions:
1. The stock has to be in a continued Up-trend.
http://www.profitfromprices.com Profit 12 From Prices
2. Today’s HIGH price (TDH) has to be highest price (TOP) for the stock in the last few
days. (If it is the highest for the last three or more weeks, we have a strong form of a
U-TURN (SELL) signal. If it is the highest for the last three to ten trading days only,
we have a weak form of U-TURN (SELL) signal. The strong form indicates a likely
trend reversal for the current major trend; and a weak form is related to just the start
of a Reaction or the end of a Correction.).
3. Today’s Open price (TDO) has to be HIGHER than Previous Day’s High price (PDH).
TDO > PDH (The more the difference between TDO and PDH, the more powerful the
signal is going to be)
4. Today’s Close price (TDC) has to be LOWER than Previous Day’s Close price
(PDC).
TDC < PDC
5. Today’s Close price (TDC) has to be LOWER than Previous Day’s Open price
(PDO).
TDC < PDO
6. Today’s Volume has to be decisively HIGHER than the normal volume of the last few
days or Previous Day’s volume. If the above conditions are fulfilled, you will mostly
see a decisive jump in stock volume today. If you don’t see a jump in the volume
today, the signal loses some of its strength.
(BUY) signal in a Bear market, U-TURN (SELL) signal is equally powerful to indicate a
change in trend when a stock is going strong and is making new higher prices (in a Bull
market). All of a sudden in a Bull trend the stock puts up a disappointing down day and
surprises most people. Many people think this as just a Reaction and expect the stock to
resume its continued ascending movement soon; but it does not happen most of the time
when the reversal conditions of the U-TURN (SELL) signal are met.
Here are the conditions for the U-TURN (SELL) signal with Bearish implications in a Bull
market. Please note that the signal discussed here takes place when the stock is in a uptrend
(Bull market) but the signal actually indicates that the stock is about to enter into a Bear
market or a down trend.
Key Points to remember: Current Trend- Up. Strong Open. Strong Bear Day. Increase
in Volume.
Conditions:
1. The stock has to be in a continued Up-trend.
http://www.profitfromprices.com Profit 12 From Prices
2. Today’s HIGH price (TDH) has to be highest price (TOP) for the stock in the last few
days. (If it is the highest for the last three or more weeks, we have a strong form of a
U-TURN (SELL) signal. If it is the highest for the last three to ten trading days only,
we have a weak form of U-TURN (SELL) signal. The strong form indicates a likely
trend reversal for the current major trend; and a weak form is related to just the start
of a Reaction or the end of a Correction.).
3. Today’s Open price (TDO) has to be HIGHER than Previous Day’s High price (PDH).
TDO > PDH (The more the difference between TDO and PDH, the more powerful the
signal is going to be)
4. Today’s Close price (TDC) has to be LOWER than Previous Day’s Close price
(PDC).
TDC < PDC
5. Today’s Close price (TDC) has to be LOWER than Previous Day’s Open price
(PDO).
TDC < PDO
6. Today’s Volume has to be decisively HIGHER than the normal volume of the last few
days or Previous Day’s volume. If the above conditions are fulfilled, you will mostly
see a decisive jump in stock volume today. If you don’t see a jump in the volume
today, the signal loses some of its strength.
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