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Strategies & Market Trends : VOLTAIRE'S PORCH-MODERATED -- Ignore unavailable to you. Want to Upgrade?

To: Venkie who wrote (25188)	12/14/2000 9:34:33 PM
From: Boplicity	Read Replies (2) \| Respond to of 65232

It's up to the FED, we will retest then they will control the direction from that point. The time to really worry is after two or three reductions and the economy is still not responding yet, say nine months from now. Once they lower the market will have a period of where it gets the benefit of the doubt, but after nine months it will be show me the money time. I expect the market to base here with the selling stop in it's track by an ease, then any hint of a turn around and the market will get going again. re: askresearch.com Start watching this chart. take notice of the stoch. indicator (second indicator box) notice how it is at the top which is overbought, take notice how the stock moved each time it reach the top area, wait to add or buy if you are trading till it reaches the lower area around 10 or below which is oversold. Also notice all those buyers that just waiting to sell out, all that overhead resistance needs to be taken care of before the stock can get going again. <<re: Stochastics An indicator that measures the price velocity of a particular stock or market index. It essentially shows us where price is trading within a given range. The boundaries of the range would be the high and the low for a specific time period determined by the user. A stochastics of 100% would mean price is currently trading at the extreme high of the range and a stochastic of 0 would mean price is trading at the extreme low. Stochastic, like the Relative Strength Index, helps us to determine whether price is overbought or oversold. When the Stochastics crosses up through the 80% line, it is considered overbought. Below 20% is considered oversold. The shorter the stochastic period, the more signals the indicator will produce. However, if your period setting is too short, the majority of your signals will be false. A moving average of the stochastic provides a basis for buy and sell signals. When an overbought stochastic turns down through its MA, a sell signal is produced. When an oversold stochastic moves up through its MA, a buy signal is produced. Stochastics was developed by George C. Lane and is calculated as follows: K = ((C - Ln)/(Hn - Ln)) * 100 Where K is Lane's Stochastics C is the latest closing price of the stock L is the n-period low price of the stock H is the n-period high price of the stock n can be any number (Lane suggests 5 to 21) Furthermore, Lane recommends that the stochastic line be smoothed twice with three-period simple moving averages: SK is the three-period simple moving average of K, and SD is the three-period simple moving average of SK.>> Play around with the stoch setting and time frame take notice of how the stock moves as the stoch indicator oscillates. askresearch.com Also notice how the stoch is making lower highs and lower lows, that shows how weak the stock is, you can almost see it forming an arrow pointing DOWN! Until the above mentioned pattern is broken the stock will remain weak with a downward bias. Greg