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Strategies & Market Trends : Technical Analysis - Beginners

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To: David R. Evans who wrote (7468)1/3/1998 10:07:00 AM
From: Jack Landis  Read Replies (4) of 12039
 
Dave...(& Andy,Richard,Chan,etc.)

I have never received a response to what I feel is an important question I raised several days ago; "When using indicators like stochastics,RSI,MACD, why only take buy signals when the indicator rises through a threshold like 20 or 30?"
I can find many cases where the indicator turns up from a high level like 50 and starts a highly profitable move.In fact these are strong trending stocks that are just coming out of a pullback.
And why sell only when moving down from a high level? What if a stock gets a buy signal and never makes it above 80 on the indicator. When do you sell?

Jack Landis
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