The Opposite Signal

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:

Screened Results

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.

AJI.png

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).

Magni.png

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

Yinson.png

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.  

 

DISCLAIMER: THIS IS A PERSONAL BLOG AND SHALL NOT BE RELIED IN WHATSOEVER MANNER BY ANYONE. ALL ARTICLES CONTAINED IN THIS SITE ARE STRICTLY FOR INFORMATION AND ILLUSTRATIVE PURPOSES ONLY AND DOES NOT PURPORT TO SHOW ACTUAL RESULTS. IT IS NOT, AND SHOULD NOT BE REGARDED AS INVESTMENT ADVICE OR AS A RECOMMENDATION REGARDING ANY PARTICULAR SECURITY OR COURSE OF ACTION. SOURCES USED IN THIS SITE HAVE NOT BEEN INDEPENDENTLY VERIFIED FOR ACCURACY, COMPLETENESS AND TIMELINESS. YOU SHOULD SEEK INDEPENDENT AND PROFESSIONAL INVESTMENT ADVICE IN REGARD TO YOUR INVESTMENT DECISIONS. THE AUTHOR MAY HOLD POSITIONS IN THE SECURITIES MENTIONED IN THE ARTICLES

Author: Ken Utau

Markets Observer + Food Lover

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