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To: GRANOLA who wrote (180)	8/5/1998 4:20:00 PM
From: Toby Zidle	Respond to of 438

Marc, Stochastics are based on the way short and long moving averages behave with respect to each other. I won't bother with either a technical explanation or a lot of math, but if you click on the link Granola provided and scroll down to the bottom chart, you'll see a chart of two stochastic curves. One has just crossed above the other. That crossing constitutes a 'buy' signal. Needless to say, in technical analysis, one must not rely on a single indicator to make 'buy/sell' decisions. This is merely an alert, so that an analyst will look for corroborating evidence before he acts. Given the behavior of today's market, perhaps the stochastic crossing has reversed itself. (One of the banes of technical analysis is to get 'whipsawed' when using a single indicator. That is why independent confirmations are so important.)