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To: Warpfactor who wrote (83502)	1/4/2001 9:03:37 PM
From: Don England	Respond to of 95453

siliconinvestor.com god help us if this link doesn't work, warp. i am not any great shakes at t.a., but i do like the stochastics crossover. if you can pull the above link up you will see that the crossover went at just over 80 and has headed precipitously down. yes, the scale is 0 -100, but no, a move over 80 just means you are overbought - it doesn't mean sell until the lines cross and head down; sometimes they cross and re-cross and ramble sideways and the stock continues up and you end up selling early; once they get there, though - crossing down ~80, the chance of getting in lower if you sell are quite good. seeing these stochastics over 80 is definitely a warning sign. stochastics can be set up with various numbers and then the meaning changes some. no, i did not wait for the cross in the upward direction at ~20; that would have been the smart move. i am not convinced they will go that low given that they mainly seem to be in some decent support. obviously buy and sell signals occur outside of this simple pattern, so it isn't foolproof, just one i like. i compare it to the macd, vol., obv, etc. for some confirmation. what caught my eye was that of 20 or so stocks i was looking at almost every one had crossed down and was on the sell list. (another way of saying this is that there has been a rally, obvious, and that profit-taking will now ensue - perhaps not quite as obvious) how much downdraft you get on such a signal varies. you might get an edge of a few percent down, if you traded out at the cross and wanted back in, and you might get much more. it's awfully easy to make mistakes. i am not convinced there will be a lot more to get in these stocks, on the downside, as they simply fell back into what looks like decent support - and they fell awfully fast and got helped by uncle al begging for sector rotation. (i tend to like the crossover-up at ~20 as a clearer buy signal than the cross-down ~80 as a sell indicator; i think maybe less attention is paid to it, so it is more effective....?) stockcharts.com!D10,2)(VC60)(ILH15,5,5!LA8,17 here is another chart, the comp. it also shows a fair correlation of the 80/20 idea, and also shows some rambling and mumbling noise under 20 that didn't mean much. hope i haven't been long-winded without being clear. someone here who knows more t.a. than i do can probably better explain what i am about. don