Sell Signal

AAA

DEFINITION of 'Sell Signal'

An event or condition that alerts investors to dispose of a particular investment. Sell signals may be observed by attentive analysts and investors with a good understanding of the stock market, while some investors prefer to rely on trading software or charts to tell them when to sell.


Some investors tend to simply follow the crowd, selling when everyone else thinks they see a sell signal.

INVESTOPEDIA EXPLAINS 'Sell Signal'

A poorly performing market may appear to be an obvious sell signal, but many contrarian investors see this as a strong buy signal as long as the companies underlying the stocks are still fundamentally sound. Purchasing undervalued stocks when they are selling at a "discount" like this has helped many investors achieve excellent returns.

RELATED TERMS
  1. Buy Signal

    An event or condition that alerts investors to purchase a particular ...
  2. Trade Signal

    A sign, usually based on technical indicators, that it is a good ...
  3. Bear Market Rally

    A period in which prices of stocks increase during a bear market. ...
  4. Indicator

    Statistics used to measure current conditions as well as to forecast ...
  5. Technical Analysis

    A method of evaluating securities by analyzing statistics generated ...
  6. Bull Market

    A financial market of a group of securities in which prices are ...
Related Articles
  1. Active Trading

    Trading Without Noise

    False signals can drown out underlying trends. Find out how to tone them down and tune them out.
  2. Investing Basics

    What Are A Stock's "Fundamentals"?

    The investing world loves to talk about fundamentals, but do you know what it means?
  3. Fundamental Analysis

    Become Your Own Stock Analyst

    Learn how to do your own stock analysis and become a wiser investor.
  4. Active Trading

    Qualitative Analysis: What Makes A Company Great?

    To understand the qualities that make for a great company, investors must dig deep into "soft" metrics.
  5. Trading Strategies

    When Is A Bull Market Not A Bull Market?

    During some bull or bear moves in the stock markets, investors will be going with the trend, but day traders may find they cannot.
  6. Trading Strategies

    Can You "Learn" The Stock Market?

    All of the knowledge in the world won't ensure the perfect trade every time - but is it possible to improve your odds in the market?
  7. What's a Marketable Security?
    Active Trading

    What's a Marketable Security?

    Marketable securities are financial instruments that can be readily bought and sold in a public market. The key feature is the ease with which it can be sold and converted into cash. Usually, ...
  8. The correlation coefficient is a measure of how closely two variables move.
    Active Trading

    What's the Correlation Coefficient?

    The correlation coefficient is a measure of how closely two variables move in relation to one another. If one variable goes up by a certain amount, the correlation coefficient indicates which ...
  9. Trading Strategies

    What are the best technical indicators to complement the Parabolic Indicator?

    Learn about two of the best technical indicators recommended for traders to use to refine a trading strategy based on the parabolic SAR indicator.
  10. Technical Indicators

    What is the Double Exponential Moving Average (DEMA) formula and how is it calculated?

    Discover the equation for double exponential moving average, or DEMA, and learn how it is calculated for a better understanding of how it works.

You May Also Like

Hot Definitions
  1. Multinational Corporation - MNC

    A corporation that has its facilities and other assets in at least one country other than its home country. Such companies ...
  2. SWOT Analysis

    A tool that identifies the strengths, weaknesses, opportunities and threats of an organization. Specifically, SWOT is a basic, ...
  3. Simple Interest

    A quick method of calculating the interest charge on a loan. Simple interest is determined by multiplying the interest rate ...
  4. Special Administrative Region - SAR

    Unique geographical areas with a high degree of autonomy set up by the People's Republic of China. The Special Administrative ...
  5. Annual Percentage Rate - APR

    The annual rate that is charged for borrowing (or made by investing), expressed as a single percentage number that represents ...
  6. Free Carrier - FCA

    A trade term requiring the seller to deliver goods to a named airport, terminal, or other place where the carrier operates. ...
Trading Center