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Using Sell Indicators

•Pivot Highs ( Close / 5 day/ 15 day)

•Cross Downs ( Close / 5 day/ 15 day)

•RSI Over Bought >90

•Double Top

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Stop Loss

Reversal Pivot Highs
The 3-Bar Pivot High (close / 5 day / 15 day):

Left Bar: Has a lower high than the center bar.

Center Bar (The Pivot): Has the highest high of the group.

Right Bar: Has a lower high than the center bar.

Traders often use a "strength" or "period" setting to make this more significant. For example, a 5-bar Pivot High requires two lower highs to the left and two lower highs to the right. The more bars required on either side, the more significant the reversal point is considered

pivot highs 26dec.jpg

Price Closes below 5 day Moving Average
In Technical Analysis, a Close Price crossing below a 5-day Moving Average (MA) is a short-term bearish signal indicating that the current price has lost its immediate upward momentum. Because the 5-day period is short, this signal is highly sensitive. Price crossing below 5 day MA is often the first warning sign that a short-term rally may be stalling.

close below 5 MA 26dec.jpg

RSI Over Bought

The RSI Over Bought indicator has moved above 90 on 30 Dec. The only way from here is down e.g. Feb 2026

APX RSI 8feb.jpg

A trader who bought APX on 18 Dec or early on 19 Dec (Commsec provides intra day stock prices in chart form) would have made about 9% in 5 days.

bolters.jpg

The Doji (open and close very close together) on 23 Dec is a possible sell indicator as well, also flagging a potential change in direction.
Having made about 9% in 5 days the Swing Trader must be ready to take profits.

As the saying goes "You can't go broke taking a profit!".

Monitoring Sell indicators is essential.

For the risks involved in Swing Trading ask Google Gemini AI

https://gemini.google.com.

Double Top Technology Sector
At the end of September 2025 there is a clear double top signifying the upcoming large fall in the Technology stock Index which is confirmed by the 5 and 15 day MA cross downs in early October. The smart money was getting out at the end of October 2025.

This eventual large fall was due to belated fears that AI would decimate the major software development companies.

sell up 15feb.jpg
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