To: Jimbobwae who wrote (5036 ) 11/3/2002 2:15:24 AM From: velociraptor_ Read Replies (1) | Respond to Doesn't look like the 8/20 EMA is all that reliable to call it bullish. They crossed up briefly in March and August this year as well for a short period only to collapse back down. Anyone that bought on that indicator, bought at the top. not to say it will do the same thing, but just that I wouldn't call it a reliable indicator at this point. OBV is in a slightly negative to sideways downtrend. There's not enough data to say it is in a positive trend with only 1 day crossed up. Stochastics bouncing off the 50 is meaningless. All it says is we have an uptrend right here. We could go back to overbought, but we could also dip back down...if we dip back down before we hit overbought again though, we have a very strong negative divergence. Anytime stochastics turn back up or down before an extreme is reached, one has to be put on alert because it tends to form a stochastics compression pattern which eventually leads to failure which could be in 1 day or a week or so. Stochastics really needs to pull back at least 75% to work off enough overbought to make a full run again. Note the stochastics pattern in mid March to show how soon it can dip back down. Also, note the compression pattern in stochastics in August that eventually leads to failure.
