When should sell the stock based on technical analysis?

According to William O’Neil the founder of Investor’s Business Daily, sell the stocks when they gain 20–25% after the breakout but if the stock gains 20 percent within three weeks of a breakout, then it must be held for at least eight weeks.

The following are some of the key technical sell signs:

1. If a stock is making a new high with a lower volume it indicates that price is moved by weaker hands (retail Investors) and big investors are not participating in the stock. In this case, you must sell the stock at a higher level.
2. If stocks trade at 70–100 % higher than their 200-day moving average, it hints that it has already risen much and will fall or correct.
3. If stocks rise throughout the day but close near their lows for several days it signals to exit from that counter.
4. A declining relative strength line indicates technical weakness. A declining RS line can be used to sell your stocks.

8% strict sell rule: (Given by William O’Neil)

After an extensive study of the past stock movements, it was observed that winning stocks do not drop more than 8 percent from their Pivot buy point.