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Pastimes : ASK Vendit Off Topic Questions -- Ignore unavailable to you. Want to Upgrade?


To: starbreak who wrote (17517)12/23/2000 1:04:35 PM
From: Venditâ„¢  Read Replies (1) | Respond to of 19374
 
The optimal entry is under 20 and get ready to book profits over 80. I never buy a positive cross over above the 80 break out or not. The most successful entries are made below 20 to 30.

Stochastic

The Stochastic is a momentum oscillator developed by Dr. George Lane. The premise behind the Stochastic indicator is that when a stock is rising it tends to close near the high and a falling stock closes near it's low and this is plotted as two lines, the fast stochastic (Black-%K) and slow stochastic (Green-%D).

A bullish signal occurs when the (Black-%K) rises through the (Green-%D) when it is below 20. A bearish signal occurs when the (Black-%K) goes under the (Green-%D) above 80. Dr. Lane believes the most important signal occurs when the (Green-%D) and stock price diverge. This is often seen when a stock makes a new high and the (Green-%D) clearly fails to reach or better it's old high. Conversely, a stock is oversold and ready to reverse when it makes a new low but the (Green-%D) fails to confirm that low.