KWC Chart School · Lesson 12
Three Warning Lights: Stock Sell Rules
Learn three warning lights for stock sell discipline: a deteriorating market, unusually heavy downside volume, and a weekly moving-average break.
Study guide
What to look for.
- Respect a weakening market environment
- Recognize unusually heavy downside volume
- Use a weekly moving-average break within a written sell plan
Why it matters
Stewardship includes protecting capital. Predefined warning lights help a trader respond to deteriorating evidence before fear, hope, or attachment controls the decision.
Practice prompt
Write the three warning lights into a sell checklist and define what action each signal triggers before the next trade.
Stewardship boundary
Evidence before action.
Use the lesson to improve observation and planning—not to predict guaranteed outcomes. Define the setup, confirmation, invalidation, and risk before capital is committed.