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Technology Stocks : BORL: Time to BUY!

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To: Jeroen Pluimers who wrote (8269)12/30/1997 12:19:00 AM
From: R. Martenson  Read Replies (1) of 10836
 
Stochastic charts compare a closing price to the range
of prices ( High - Low ), and show how close the closing is
to the high of the range ( i.e. 100% ) or to the low of the
range ( i.e. 0 % ). It uses a moving average of values and
several lines to reduce short term spiking. The bottom line
seems to be, in the 0 - 20% range ...stocks tend to be oversold,
80 - 100% overbought and due for reversal corrections of undetermined
amounts.

Different intervals provide different results, but generally ( a very
loose caveate ), the indicator helps alarm you when extremes have
been reached and are probably ready to reverse.

P.S. I'm not a pro at this either, just a quick summary. It helps
take some of the emotion out of the natural and often large swings
stocks take.
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