Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Stochastics -- Ignore unavailable to you. Want to Upgrade?

To: Wayners who wrote (23)	1/23/1998 1:07:00 AM
From: posthumousone	Read Replies (1) \| Respond to of 927

m a novice fascinating with TA and how it measures mass pyschology, so please bear with me if my questions seem to elementary. Trading using stochiastics is differant depending on whether the stock is in a range or a trend.........OK i follow the math and logic there BUT what i have a hard time with is DEFINING whether a stock is in a range or trend. For instance: a stock trades at $5 for a year.....(ok a range) but then breaks out 20 in a months time quickly falls to a 12-14 range for 2 months then moves up to a 14-16 range for a 2 months then drifts down to 13. i can say sure the trend is up...if you look at a long term graph BUT i can also say that for the past 2 weeks it has been in a down trend (all down days while crossing the 20 and 50 day simple moving average) BUT i can also say it is still in a 12-16 price range based on the 5 months of data since after it broke out SO the stochiastics now.....the fast line crossed the slow linemoving up while under 20.......if i look at thisfor the past to weeks it shouldnt be a buy signal BUT if i look over the past 5 months while its in a trading range of 12 -16 this would indicate an oversold condition and a buy signal Any hints would be appreciated g

To: Wayners who wrote (23)	1/23/1998 1:08:00 AM
From: posthumousone	Read Replies (1) \| Respond to of 927

when you use oscillators to find divergences what price do you use IE if your looking for a bearish divergence to find a market top (or stock top?) you compare when price rallies to a new high to while oscillator refuses to rise to a new peak...... OK what do they mean by new high? an all time high? a yearly high? or a new high in a recent trend? does it have to be high? can it be close say if 20 was recent high in up trend and it dipped and rallied to 19 does that count? my best guess would be a failed attempt to rally to a recent high if a high of 20, 4 months ago a dip to 12 and then 3 months later it rises to 17 dips and then goes to 16 while the oscillator doesnt reach a peak higher than when it was at 17 is that BEARISH. ? or do i have to compare it to the price of 20?