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Strategies & Market Trends : How To Write Covered Calls - An Ongoing Real Case Study! -- Ignore unavailable to you. Want to Upgrade?

To: Casaubon who wrote (11530)	9/16/1999 10:46:00 PM
From: KevinD	Read Replies (1) \| Respond to of 14162

Let's give this chart thing a try. iqc.com It's not quite what I am used to but we can try to equate. 1. The start of an uptrend would be indicated when the blue bars of the MACD break above the middle (0.00) line. Since they are heading towards the middle (until today) that could indicate that it is bottoming but there is no confirmation until they break above zero. There is more to it than that but that is the next signal that I am waiting for. 2. I use a quicker Stochastics than this as a very short-term overbought and oversold indicator but it is used within the context of the MACD trend that is indicated which is currently down for ROST. Anyway, the MACD uptrend signal will usually occur when the Stochastics is nearing or in an overbought condition meaning 80+. As you can see, ROST was heading up from 20 (oversold) but stalled in the middle. My Stochastics showed the stall a few days ago whereas this one is just showing it now. Since the Stochastics is no longer heading towards the overbought side, I suspect that the MACD is not yet ready to confirm an end to the downtrend and/or beginning of an uptrend. Hence my conclusion that it is not time to jump in yet.