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Strategies & Market Trends : Stochastics

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To: Roger Hess who wrote (915)2/13/2000 12:48:00 PM
From: jkwtrade  Read Replies (1) of 927
 
Stochastics: added reliability

In addition to simply waiting for a stock to drop below 20 to buy or above 80 to sell or short you should also look at another factor to further advance reliability. If you are looking to buy a stock when it declines below 20, indicating an oversold status, you should wait for the %k line to cross over the %d line below or near the 20 mark. The stock will not really take off and get thrusters until the 2 lines have crossed.

Regards,

J. Kelsey
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