Stock Vigilante

www.guerillastocktrading.com Made by George C. Lane in the late 1950s, the Stochastic Oscillator is a momentum guage that tells us the location of the current close compared to the high/low range over a specific number of periods. George Lane MD (1921 to 2004) was a Medical Doctor, stock trader, author, teacher, and technical analyst. He made and popularized the Stochastic Oscillator, which is one of the main indicators used in the present day amongst technical analysts. Word on the street from an interview with Lane, the Stochastic Oscillator doesn’t follow price, it doesn’t follow volume or whatever thing like that. It follows the speed or the momentum of price. As a imperative, the momentum changes direction before price. Therefore, the Stochastic Oscillator can be used to detect bullish and bearish divergences to forecast reversals. I choose to trade the Slow Stochastic for the reason that it’s more smoothed out than the Fast Stochastic making for fewer head fakes. The variation between Fast Stochastics and Slow Stochastics is just a moving average. When calculating Fast Stochastics using the values of 5 and 5, the first 5 is the raw value for Stochastics, while the second 5 is a 5-period moving average of the first 5. When using Slow Stochastics, the first two 5′s are the same as with the Fast Stochastics, with the third 5 being a moving average of the second 5. No you are not having an acid flashback, you read that right, a moving average of a moving average. Do not …