psst, page-22

There are several ways to interpret a Stochastic Oscillator. Three popular methods include:

· Buy when the Oscillator (either %K or %D) falls below a specific level (e.g., 20) and then rises above that level, and sell when the Oscillator rises above a specific level (e.g., 80) and then falls below that level. However, before basing any trade off of strict overbought/oversold levels it is recommended that you first qualify the trendiness of the market using indicators such as r-squared (see r-squared) or CMO (see Chande Momentum Oscillator). If these indicators suggest a non-trending market, then trades based on strict overbought/oversold levels should produce the best results. If a trending market is suggested, then you can use the oscillator to enter trades in the direction of the trend.

· Buy when the %K line rises above the %D (dotted) line and sell when the %K line falls below the %D line.
· Look for divergences. For example, where prices are making a series of new highs and the Stochastic Oscillator is failing to surpass its previous highs.
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so a big thankyou to Mc Camma for mentioning that CRJ stochastics were overbought today and causing the savvy traders to sell.................lol.


nah ...as the CMO shows its still trending long and while the stochastics are overbought they can stay high (above 80) while the stock price flattens , as happened today..
It is a sell however when the stochastics retreat below 80 and the CMO fails to break 0..
there is still a possibility if 34 fails to hold that a double bottom may form, 34 is also the 30 period exponential moving average level and a common TA traders entry exit level...

PS ,there is the 40 resistance others mentioned, trend and fibline resistance.after it backfills the 37/39 gap.