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Strategies & Market Trends : Options

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To: Jorj X Mckie who wrote (3063)2/16/2000 7:31:00 PM
From: edamo  Read Replies (1) of 8096
 
jorj...re "ta"

try only looking at a slow stochastic...in the case of jdsu, when p+f called for the last upside breakout, the momentum indicator that is the basis of stochastics were showing it overbought. true a stock can bounce along over the 80 line and continue an upward move, but when the k line crosses the d, either up or down it normally gives a strong probability of a reversing trend.

in a fast moving stock, many of the old ta analysis aren't swift enough to predict the psychology behind the reason for momentum......by the time you look at the p+f, it is outdated........
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