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To: jebj who wrote (10666)	5/8/1999 11:58:00 PM
From: David Wright	Respond to of 14162

jebj, What you just said makes a lot of sense if you look at the math on those indicators. RSI uses a ratio of averages of upward price changes, with an average of downward price changes. Stochastics uses the latest close with the lowest-low and the highest-high in it's formula. RSI has to track with stochastics, but there is no way it could ever lead it, since it is based on averages, and stochastics is not. I think this is one of the reasons for the long held rule that you don't use the same basic types of indicators to confirm each other. RSI and stochastics should not be used together, because they use the same numbers, and can reinforce a false signal. Same with MACD, moving averages and BB's. All different ways of looking at the same combination of numbers, and when used in combination, they will run you right off a cliff, but with vast confidence.