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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?


To: KymarFye who wrote (67315)1/19/2001 11:01:22 PM
From: Daveyk  Read Replies (2) | Respond to of 99985
 
Another cut and paste job.ggg
· Trading Bands: This is the basic bell curve, giving a picture of whether a
stock is overbought or oversold based on a 10 week moving average. 100%
overbought is three standard deviations above normal. 100% oversold is three
standard deviations below normal. If the stock is 100% overbought, it suggests
the stock will correct to normal on the curve. If the stock is 100% oversold,
it suggests the stock will bounce to normal. The disadvantage to trading bands
is the tails can go out to infinity.

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100% Oversold Normal 100% Overbought
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