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Strategies & Market Trends : Classic TA Workplace -- Ignore unavailable to you. Want to Upgrade?

To: The Freep who wrote (87349)	12/11/2003 4:49:33 PM
From: Paul Shread	Respond to of 209892

Stochastics is a measure of where it closes within X period range, so the declining stochastics is a sign that it's closing well off its intraday highs, as it's done for the last three days. That can be bullish, because it relieves overbought conditions and allows for more upside, but it's also a sign of weakness (George Lane's theory was that stocks close near their lows in downtrends and near their highs in uptrends, but it's also for contrarian use and divergences). You're also using smoothed stochastics, so they'll lag. Try fast stochastics and see what that looks like.