Sigma Labs Inc (SASI)

[monkeybuilt]

Hi Stocker,

I was challenging the statement that a rising stochastic combined with a falling PPS is a "death sentence". It is actually a signal of a possible reversal.

http://stockcharts.com/school/doku.php?id=chart_school:technical_indicators:stochastic_oscillator_fast_slow_and_full#bull_bear_divergences

Bull Bear Divergences

Divergences form when a new high or low in price is not confirmed by the Stochastic Oscillator. A bullish divergence forms when price records a lower low, but the Stochastic Oscillator forms a higher low. This shows less downside momentum that could foreshadow a bullish reversal. A bearish divergence forms when price records a higher high, but the Stochastic Oscillator forms a lower high. This shows less upside momentum that could foreshadow a bearish reversal. Once a divergence takes hold, chartists should look for a confirmation to signal an actual reversal. A bearish divergence can be confirmed with a support break on the price chart or a Stochastic Oscillator break below 50, which is the centerline. A bullish divergence can be confirmed with a resistance break on the price chart or a Stochastic Oscillator break above 50.

Correct me if I'm wrong, but what I'm seeing is higher lows in the stochastic and a falling PPS.