William, this may give you a visual idea of what I was talking about
iqc.com
The scale is still too large to pick up the indicators well (big charts is better for that) but that gives you an overall snapshot.
The bollinger bands, RSI and stochastics work together in a confirming way. When you have RSI > 75, fast & slow stochastics significantly > 80, and are hugging the upper bollinger band (especially if it pierces) you have an "overbought stock". Probably a bad entry point.
FYI what VICL had recently is what called a flag an pennent formation, generally regarded as bullish. The red line is the moving average, note how VICL returned to the MA, but since the MS was still in an up trend, the trend continued.
Reverse that (RSI < 25, stochastics < 20, lower bollinger band hug or pierce & you have an oversold stock - possibly a good entry point.
Hope this helps, time to actually start working. Scott |
