When To Sell Stocks: 10 Market Navigator Signals

Deepvue
Deepvue

September 8, 2024

8 min read
712 views

Determining the right moment when to sell stocks requires a careful blend of analyzing market cycles, price trends, and occasionally some basic instinct acquired over years of experience. Successful traders frequently aim to streamline their processes, by focusing on the market’s overall trend to filter out unnecessary distractions.

Remember: 3 out of 4 stocks move with the general market. When the market is trending lower, lean bearish while the overall direction of the market resists your stocks lower.

No matter what the media says, the market dictates the price movement. Your job as a trader is to analyze price movement and decide when to sell.

Selling stock is an individual decision, and it’s crucial to remain cognizant of the inherent risks in investing. While no market strategy offers foolproof results, Deepvue’s Market Navigator Indicator is crafted to assist in gauging the general market and specific stock trends.

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This technical analysis tool uses 10 different sell signals to help you identify potential areas of when to sell stocks.

Market Navigator Overview

The Market Navigator integrates 10 unique sell signals, each designed to identify exit points for selling stocks. By combining multiple sell signals, this tool aims to provide a comprehensive analysis within one single metric.

Symbol: SPY
Company:
SPDR S&P 500 ETF Trust
Year: 2024

When To Sell Stocks

You can see the Market Navigator Indicator applied to the chart above. At the bottom of the candles are Red arrows indicating when to sell; The green arrows at the top of the candles are Buy Signals.

When assessing market health, always take into account the predominant direction of the price trend. When used with an index, the Market Navigator aids in identifying key signals for when to consider selling stocks.

Market Sell Signals

Based on Technical Analysis, the Market Navigator uses 10 defined metrics to analyze when the market is in a defined uptrend.

  • Cross Below 21 EMA: This signal is triggered when the price crosses below the 21-period Exponential Moving Average (EMA). Where the current bar close is below 21 EMA while the previous bar closed above the 21 EMA.
  • Trending Below 21 EMA: This signal is triggered when the price closes below the 21 EMA for each of the last 5 periods.
  • Living Below 21 EMA: This signal is triggered when the price closes below the 21 EMA for each of the last 15 periods.
  • Cross Below 50 SMA: This signal is triggered when the price crosses below the 50-period Simple Moving Average (SMA). Where the current bar closed below the 50 SMA while the previous bar closed above the 50 SMA.
  • Cross Below 200 SMA: This signal is triggered when the price crosses below the 200-period SMA. Where the current bar closed below the 200 SMA while the previous bar closed above the 200 SMA.
  • High Below 50 SMA: This signal is triggered when the stock’s high price crosses below the 50-period SMA with the previous close above the 50 SMA.
  • Distribution Day: A distribution day is identified when the closing range of a bar is less than 50% with larger volume than the previous bar.
  • Lower Low: This signal occurs when the current bar’s low is less than the lows of the previous 14 bars.
  • Downside Reversal Bar: A downside reversal bar signal is generated when the stock opens above the high of the previous bar but falls to close below the previous bar’s low.
  • Distribution Cluster: This signal is triggered when a distribution day has occurred 3 times in a rolling 7-bar period.

Navigate The Markets

This adaptable tool is applicable to any index, stock, or ETF across all time frames. You have complete freedom to customize the tool according to your trading style.

For Swing Traders, the Market Navigator can be added to your market analysis routine.

When you routinely screen stocks to get a feel for the overall health of the market, apply the Market Navigar to the index. When the general index begins showing signs of weakness, your stocks may offer an ideal exit strategy while it’s trading at all-time highs.

Symbols: SPY / NVDA
Company:
SPDR S&P 500 ETF / Nvidia
Year: 2023

When To Sell Stocks

NVDA was a leader off the lows at the end of the 2022 bear market and quickly became the focus of many investors and traders. The first Sell Signal that appeared on the SPY before the Fall 2023 correction was an ideal exit on NVDA to avoid sitting through a multi-month base.

Symbols: SPY / TSLA
Company:
SPDR S&P 500 ETF / Tesla, Inc
Year: 2021

When To Sell Stocks

As the 2020-2021 bull market was coming to an end, TSLA broke out of its final base heading to new highs. The Market Navigator signals began appearing at the highs right before the 2022 bear market began. Exiting TSLA here would have gotten you out of the trade near its all-time highs.

Symbols: SPY / FTNT
Company:
SPDR S&P 500 ETF / Fortinet, Inc.
Year: 2020

When To Sell Stocks

Before the 2020 Covid Crash, the Market Navigator identified the best time to sell. Many growth stocks like FTNT were trading near all-time highs before the market broke down. Exiting when the Market Navigator flashed a sell signal could have gotten you out of stocks that fell more than 50% in under one month.

When To Sell Stocks

For Position Traders, the Market Navigator can be added to stocks and ETFs on any timeframe.

Adjust the indicator to individual stocks just as you would on the indices. This tool will trigger multiple Sell Signals to assist you in determining when is the best time to reduce your position or exit the trade.

Symbol: ANF
Company:
Abercrombie & Fitch Co.
Year: 2023-2024

When To Sell Stocks: 10 Market Navigator Signals

Arguably one of the best stocks in the 2023 bull market, ANF consistently made new highs on its 1,300% move from September 2022 to May 2023. As the Sell signals began to amass a new base formed. We are now looking at a potential longer-term topping formation as many sell signals continue to appear.

Symbol: UBER
Company:
Uber Technologies
Year: 2023-20243

When To Sell Stocks: 10 Market Navigator Signals

UBER was one of the strongest stocks coming out of the 2023 Fall correction moving 75% in under four months. When some investors may have thought a new base was forming, the Market Navigator displayed many sell signals just 5% off its highs.

Symbol: UPST
Company:
Upstart Holdings, Inc.
Year: 2020

When To Sell Stocks: 10 Market Navigator Signals

UPST was a blockbuster IPO coming out of the 2020-2021 Bull market advancing over 1,440% from its IPO opening price. Just after its final 200% run from a late-stage base breakout, the Market Navigator flashed a sell signal when the price was just off all-time highs.

Adding The Market Navigator To Your Charts

Type Market Navigator into the search when you open Indicators & Strategies

When To Sell Stocks: 10 Market Navigator Signals

Expand the Titles of your Indicators and click on Settings

When To Sell Stocks: 10 Market Navigator Signals

You can now customize your Sell Signals.

When To Sell Stocks: 10 Market Navigator Signals

If you want to view the indicator as it was shown above when discussing Navigating The Markets, reduce the Count of Sell Signals to Display.

When To Sell Stocks: 10 Market Navigator Signals

You can then change the style. Choose which icon to display in addition to above or below the candle.

When To Sell Stocks: 10 Market Navigator Signals

Combination Or Individual Signals

With the Market Navigator, you have the flexibility to either view a composite ratio derived from all 10 signals or opt to focus on specific signals individually.

When using a Combination of Signals, change the Count to adjust how sensitive the signal is.

Market Navigator

For example, If you select a Combination of Signals and have the Count of Sell Signals to Display set to 3, the signal will appear when 3 out of the 10 listed sell signals are met.

When using Individual Signals, select which signals you want on your chart.

When To Sell Stocks: 10 Market Navigator Signals

In this example we see the red Sell Signal appear only when any of the two selected signals are triggered.

Experiment with the differences to find what will work with your style.

Key Takeaways

The majority of stocks follow the general market. When trying to maximize profits, begin looking for signs of weakness in the overall market to sell your stocks when they are near their highs.

Based on Technical Analysis, The Market Navigator utilizes multiple Sell Signals that help you determine the right time to sell stocks. This tool streamlines the decision-making process by concentrating on price movements.

Apply the Market Navigator to indices, stocks, and ETFs on any time frame.

Customize the Market Navigator to use a combination of the 10 Sell Signals, or focus solely on one, or a select few, that resonate with your trading strategy.

By integrating these insights and using the Market Navigator you can enhance your ability to time the market more effectively to find the right time to sell stocks.

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