charts n stuff, page-4

Hi piot,
Overbought stochs are typically fine. However, when the stoch turns down back below 80, with the red above the black, then that is a sell signal. Sometimes there may be divergence, where the stoch seems to bounce or bump against a support/resistance line. When this line is broken, it signals a reversal. Sometimes the line is broken, only for the stoch to move back and continue its previous pattern.



1st and 3rd show bullish divergence. 2nd shows bearish divergence.

Stochastics are useful tools, but by no means are they the most important.

Not sure how clear this reads, hopefully you can understand want I'm trying to communicate. If not, put up another post.

Cheers.