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Pastimes : ASK Vendit Off Topic Questions -- Ignore unavailable to you. Want to Upgrade?

To: Tri Bui who wrote (408)	5/22/1999 11:15:00 AM
From: Vendit™	Read Replies (1) \| Respond to of 19374

Good morning Tri Bui, Below is the glossary for all of the indicators that you mentioned. I found it helpful to learn only one indicator at a time and look at it many times until you feel comfortable with it and understand fully what it is telling you. Stochastics is a good one to start with. One thing you should remember is that there is not a universally effective indicator that will work well with all stocks. askresearch.com This is the text book definition for Stochastics indicators and how they should be applied. Stochastic The Stochastic is a momentum oscillator developed by Dr. George Lane. The premise behind the Stochastic indicator is that when a stock is rising it tends to close near the high and a falling stock closes near it's low and this is plotted as two lines, the fast stochastic (%K) and slow stochastic (%D). A bullish signal occurs when the %K rises through the %D when it is below 20. A bearish signal occurs when the %K goes under the % D above 80. Dr. Lane believes the most important signal occurs when the %D and stock price diverge. This is often seen when a stock makes a new high and the %D clearly fails to reach or better it's old high. Conversely, a stock is oversold and ready to reverse when it makes a new low but the %D fails to confirm that low. For clarification the fast line %K is referring to the black line and the slow line %D is referring to the green line. A buy signal is generated when the black line (while very low in it's range) makes contact with the green line. This should be the black line heading up from underneath the green line and crossing over top of the green line. A sell signal is generated when the black line from above the green line high in it's range sticks the green line and is heading down. askresearch.com In your chart you have clear buy signals on or about March the 4th, March 16th, and May 11th. I tend to use this indicator with MACD 8-17-9 to find entry points. I don't use either signal to find exits points. I like william's R%, Money flow, and RSI-14 for finding exits. Remember when looking at stochastics to pay attention where on the scale to the right of the lines that the cross overs occur. The best buy signals occur at or below20. Sell signal confirmations occur over 80. Now, have I got you good and confused yet? <gg> Ask me about anything that is not clear to you. Vendit