Self-Managed Trading with Stochastics - By George & Cairie Lane

Seminar Topic: George and Cairie will provide in-depth explanations of the theory of momentum and stochastic signals. Using numerous charing examples, they will show you how to use this timing tool to best advantage when trading stocks, futures and indicies. Follow along in the PDF workbook while you place the MP3 seminar! Learn about this classic indicator.


The Theory of Stochastics:

Stochastics is based on the observations, thus, as price decreases, closes tend to accumulate ever closer to their extreme lows of the daily range. Conversely, as price increases, closes tend to accumulate ever closer to the extreme highs of the daily range. This concept holds whether you are working in a 1-minute, 3-minute, 5-minute, 15-minute, 30-minute, hourly, daily, weekly , and monthly time periods.

The Theory of Momentum:

The momentum oscillator measures the velocity of direction price movement. Momentum always changes direction (trend) before price changes.

The Lanes Also Site Specific Factors To Identify When Charting With Stochastics:

1) Divergence/Convergence     2) Crossovers     3)Hinge     4) Warnings     5) Reaching the Extremes     6) Knees &Shoulders     7) Set-Up

Also See Suggested Filters when Charting Stochastics:

1) A Trendline   2) A Longer-Term Stochastic   3) A 38-bar Moving Average   4) Another Indicator    5) A Chart of Larger Degree with Stochastics

Always here to help,

3 thoughts on “Stochastics

  1. hi,while learning ta since 1996,i have seen many ups & downs in my charting carrer, but after some intense study of intraday charts using stochastics only(5,3,3) i have found some very very interesting interpretations, which are not mentioned untill now any where else....i want to programme a trading system, may i have some help ??

  2. Yes, the settings for STO. The charts in the seminar weren't very clear so I couldn't tell if they were fast or slow (it seemed like the lady used the slow as differentiated from the man). But also have the settings changed over the years?

  3. I really enjoyed the stochastics seminar. However, I couldn't determine which STO to use (fast or slow) and, since this an old seminar, do the settings need to be updated? Thanks Kerry


    Are you referring to the settings for the slow and fast on the MarketClub studies? I'm not a expert on Stochastics, but I would suggests using a little bit of outside research. I will try to dig up some more information on Stochasitcs and place it on the blog. Thanks for reading, I do appreciate it! Best wishes!

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