Here’s One Way To Use Stochastics

  • September 14, 2004
  • Tsutae Kamada

Since August 9, Yahoo! (YHOO)
has gained more than 25%, and it is still going strong. In fact the
stock has been rising five consecutive days including today’s session. Some
market participants say it is not prudent to chase overheated stocks, but YHOO
has provided excellent buying opportunities to intraday traders.

10:54:49
(From TradingMarkets TradersWire)

 Daily
Setup Alert


Yahoo! (YHOO) is extending its gains and moving above a gap zone on heavy
volume. YHOO is up 0.53 at 32.40. 

 

Now, let’s see the 5-minute chart. Shortly after
we posted YHOO, the stock formed a bull flag just above the ascending 20-period
EMA, and around 11:50 A.M., the stochastic indicator gave us a buy signal.

I am not suggesting to chase strong stocks blindly, but always remember to
follow your own trading rules.

T.Kamada

If you have questions, feel free to mail them to me.

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