A trading signal based on William O'Neil's sell strategy, identifying potential distribution days by tracking volume increase and price drops.
Explore complementary indicator rolesHow it works
The indicator monitors daily price and volume changes to detect potential selling opportunities. It tracks two primary conditions: first, an increase in trading volume compared to the previous day, and second, a price drop exceeding a specified percentage threshold.
When both conditions are met, the indicator visually highlights the price bar and adds a subtle circle marker. Traders can customize the price drop percentage, with a default setting of 0.2%, allowing flexibility in signal sensitivity and interpretation.
Why it may be useful
This signal helps traders identify potential market distribution days and manage risk during price pullbacks. By combining volume and price movement analysis, it provides a structured approach to recognizing potential trend reversals or weakness in market momentum.
The visual indicators offer traders an immediate, intuitive way to spot selling opportunities without complex manual calculations. It supports disciplined trading by providing objective criteria for exit or risk management decisions based on William O'Neil's proven trading methodology.
When to explore it
The signal is most effective in markets with clear trending behavior and sufficient trading volume. It works best when used in conjunction with other technical and fundamental analysis tools to confirm potential selling opportunities.
Traders should apply this indicator across different timeframes, from intraday to swing trading, but exercise caution and validate signals with additional market context. It is particularly useful during periods of market volatility or when seeking to manage long positions during potential trend reversals.
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What we’ve verified
Access, alerts and repainting behaviour have not been independently verified for this indicator. Check the creator’s current publication and settings.
General descriptions and classifications are recovered research. Verified details above identify the specific checks we have completed. Check the creator’s current publication for later changes.
