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Insider Buying: Another Great Way to Spot Overreactions
Oftentimes, one of the best ways to spot overreactions to news is by paying attention to technical pivot points.
For that, we typically rely on Bollinger Bands (2,20), MACD, relative strength (RSI), and Williams’ %R (W%R). In fact, when each of those indicators aligns with the others, you can call the bottom of a stock up to 80% of the time.
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