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. Chartist

    An individual who uses charts or graphs of a security's historical ...
  5. Contrarian

    An investment style that goes against prevailing market trends ...
  6. Bear Market

    A market condition in which the prices of securities are falling, ...
Related Articles
  1. Trading Without Noise
    Active Trading

    Trading Without Noise

  2. What Are A Stock's
    Investing Basics

    What Are A Stock's "Fundamentals"?

  3. Become Your Own Stock Analyst
    Fundamental Analysis

    Become Your Own Stock Analyst

  4. Qualitative Analysis: What Makes A Company ...
    Active Trading

    Qualitative Analysis: What Makes A Company ...

comments powered by Disqus
Hot Definitions
  1. Elasticity

    A measure of a variable's sensitivity to a change in another variable. In economics, elasticity refers the degree to which ...
  2. Tangible Common Equity - TCE

    A measure of a company's capital, which is used to evaluate a financial institution's ability to deal with potential losses. ...
  3. Yield To Maturity (YTM)

    The rate of return anticipated on a bond if held until the maturity date. YTM is considered a long-term bond yield expressed ...
  4. Net Present Value Of Growth Opportunities - NPVGO

    A calculation of the net present value of all future cash flows involved with an additional acquisition, or potential acquisition. ...
  5. Gresham's Law

    A monetary principle stating that "bad money drives out good." In currency valuation, Gresham's Law states that if a new ...
  6. Limit-On-Open Order - LOO

    A type of limit order to buy or sell shares at the market open if the market price meets the limit condition. This type of ...
Trading Center