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

To: Dealer who wrote (18788)	2/5/2001 3:39:53 AM
From: Walkingshadow	Read Replies (1) \| Respond to of 19374

Hi Dealer, Mostly just stochastics and Williams %R (but also Price Rate of Change). Usually these will agree with one another, but partly that depends on which stochastic setting you select. The faster settings (e.g., 5-3-3) tend to indicate extreme overbought and oversold readings sooner than slower settings such as the 15-5-5. When these indicators reach the upper boundaries of their range (90 to 100 for stochastic, 0 to 10 for Williams) that is extreme overbought territory. When the reach the lower boundaries (0 to 10 for stochastic, 90 to 100 for Williams) that is extreme oversold territory. Moving averages are only used to define support and resistance levels, and to determine how current prices relate to historical norms for that stock. Like so many other phenomena, the further stock prices diverge from historical norms or averages, the stronger the tendency for either the stock price to regress towards the averages (usually), the averages to get adjusted towards the stock price (less so), or both. It is harder for moving averages to move towards the stock price than for the stock price to move towards the moving average, and this is a simple consequence of the mathematics used in calculating the moving averages. The longer the moving average, the more true this is. If you go to AskResearch and click on the underlined (hypertext) blue indicators on the bottom right (under "Indicator Chart Settings") and flip back and forth with your browser 'Forward' and 'Back' buttons, you will see a short explanation of each. askresearch.com Regards, WS