Monthly Sell Signal
The monthly sell signal can help determine when a market top has formed
- Formed by 2 interweaving lines
- Line 1: Subtract 26 month exponential moving average (EMA) from the 12 month EMA (typically black on the chart)
- Line 2: 9 month exponential moving average
- Signals triggered when the lines intersect
- Line 2 breaking above Line 1 = BUY SIGNAL
- Line 2 breaking below Line 2 = SELL SIGNAL