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BOOMTOWN25
Is it ever smart to buy a stock when the stochastic shows that it is
posted Jun 13 '14 by boomtown25
Is it ever smart to buy a stock when the stochastic shows that it is overbought? Even if all the technical indicators say "BUY"? I feel that whenever the stochastic rises above 70% into the overbought area, it is within days that it begins to fall again.......

ALEX
when the stochastic shows that it is overbought...
posted Jun 27 '14 by alex
when the stochastic shows that it is overbought...

Well, I'm not sure if it is smart to buy, but I think this is not enough evidence to sell. I was looking for examples and I think BIDU is a great example:
http://stock2own.com/stockanalysis/stock/us/bidu

It stays in overbought territory for last 5 weeks (since May 22) and moving nowhere but up. Not very strongly, however the trend is clear, I think.

Therefore for me overbought/oversold is just another sign to be caution, but not a showstopper.

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