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  1. 557 Posts.
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    BB:
    lower charts stochastics (top) and averages (bottom). typically, stochastics should be pointing upwards as a postivie trend, when they reach ~90% it is typically overbought, but stock can remain there for a long time. same with oversold. so reliably is when you "catch" it in the move.

    Averages, same principle.

    http://www.investopedia.com/university/technical/#axzz2BmvRjvts
 
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