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- The price drops below the 200 day simple moving average. This is your first warning on the long side to exit and wait for the 200 day to be retaken.
- The MACD has a bearish crossover. This shows that the uptrend has lost momentum. This is a warning sign that the market could fall as price settles out of an uptrend and into a trading range.
- The VIX starts to go over 20 and stay there.
- Price starts to trade under the 5 day EMA.
- The 10 day EMA starts to be intraday resistance.
- Even strong rallies fail at the 21 day EMA.
- Consistent lower highs and lower lows.
- The average true range (ATR) increases with volatility during downtrends.
- Down volume days are higher than up volume days.
- Most of your long side positions start to lose money consistently and you find yourself profitable selling short not only rallies but dips.