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Technology Stocks : Thermo Electron (TMO) -- Ignore unavailable to you. Want to Upgrade?

To: John Hayman who wrote (261)	5/2/1998 3:06:00 AM
From: Hectorite	Read Replies (1) \| Respond to of 450

John, I've just be monitoring the relative difference between the 7 and 14 day simple moving average (or stupid moving average, as I call it). I Subtract the 14 day from 7 day then divide by the average, so the more negative the result the more overbought the stock is, and visa versa. These max (buy signal) and min (sell signal) differences haven't changed much over the last 2 years. I wait till it really believe the difference has maxed out before commiting so I always miss out on maybe a 1/4 of the cycle, but I don't care. The relative difference is close to the historical positive max right now which means a buy signal should come in the next day or three or five. This method has no basis in theory that I know of, but it should work for any stock that moves in a slow and wide enough trading range. DISCLAIMER: Don't try this without checking it out yourself, my knowledge of TA is just slightly greater than that of my poodle.