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Technology Stocks : JDS Uniphase (JDSU) -- Ignore unavailable to you. Want to Upgrade?

To: Perry Ganz who wrote (1897)	11/9/1999 11:11:00 PM
From: Guy Gordon	Read Replies (1) \| Respond to of 24042

RE "Why do you use a 26 day moving average?" The short answer is "whatever works". 26, 50, and 200-day moving averages are pretty much standards in TA. Since TA is nothing more than herd mentality, you must use what the herd uses. Stocks bounce off these moving averages because lots of people watch them and buy (or sell) at these values. For example, right now JDSU is over valued. Since the upward movement has slowed, people start taking profits, forcing the stock down. When it comes down to the 26-day MA lots of buyers will step in. If there are not enough buyers to soak up the shares of the sellers, JDSU will break through that support, and then more buyers will step in at the 50-day MA price.