How do you identify a sell signal?

A buy signal occurs when the fast line crosses through and above the slow line. A sell signal occurs when the fast line crosses through and below the slow line .

Stochastics are a favored technical indicator because they are easy to understand and have a relatively high degree of accuracy. It falls into the class of technical indicators known as oscillators. The indicator provides buy and sell signals for traders to enter or exit positions based on momentum.

Sell Signal Example When the price starts rising off the MA they buy . If the price drops through the MA and keeps dropping, they do nothing. If they are in a long trade, they sell if the price falls more than 4% below the MA.

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