The stochastic oscillator is a momentum indicator used in technical analysis, introduced by George Lane in the 1950s, to compare the closing price of a commodity to its price range over a given time span. George Lane, a financial analyst from the 1950s is one of the first to publish on the use of stochastic oscillators to forecast prices [1]. According to Lane you use the stochastics indicator with a good knowledge of "Elliot Wave Theory". A Center piece of his teaching is the divergence and convergence of trend lines drawn on stochastics as diverging/ converging to trend lines drawn on price cycles. Stochastics has the power to predict tops and bottoms.
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