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To: Michael Watkins who wrote (5619)	2/11/2001 12:38:32 PM
From: Chris	Respond to of 8925

for me, it could be a combination of things some tools that i've heard 1) stochastics might be in oversold region 2) the stock/index might at the LOWER part of a trading channel or lower region of the trading pattern (ie: hitting support) 3) in some books, the wisdom is after 3 consecutive down days, we usually get a pop. But another "saying" is if down 5 days, another chance of a pop. i usually dont trade on this particular rule alone. However, i do agree oversold is very vague overall. I think many were killed expecting a oversold rally when techs sold off last year. So, if you're playing for an oversold bounce, HAVE THE STOPS in place (as teresa always reminds us)

To: Michael Watkins who wrote (5619)	2/11/2001 12:49:34 PM
From: macavity	Read Replies (2) \| Respond to of 8925

Michael stockcharts.com Depends on your timeframe. i) Intra-day trader (Less than 1 day) ii) EOD trader (1 - 5 day) iii)Position Trader > 5 days. uptrend/downtrend/rangebound ? - yes. oscillators work better in ranges than in trends, but one trader's trend is another trader's oscillation, which is why it is important to figure out what time horizon you are looking at/for. Only real advice is to i) read up about oscillators (RSI and stochastics) and ii)look at charts that you know/trade and see how the price/oscillators relate to one other. Change the timeframe and see how the oscillator indicates not predicts tops and bottoms. -macavity