Educator who popularised the stochastic oscillator
George C. Lane
George C. Lane (1921-2004) was an American technical analyst and educator who ran Investment Educators in Watseka, Illinois, which he joined in 1954. He began his market career at E.F. Hutton in the 1950s and is credited with popularising the stochastic oscillator, developed in the late 1950s by a group of Chicago futures traders he was part of. He described the indicator in a 1984 article in Technical Analysis of Stocks & Commodities.
What they argue
- Momentum changes direction before price does, like a rocket that must slow before it turns down - so stochastics can anticipate turns.
- A divergence between the stochastic and price is the first and most important signal, more important than overbought/oversold readings.
- Stochastics work best combined with cycles, Elliott Wave and Fibonacci retracements for timing.
Sources
Summaries are Be The Puck's paraphrase of public material. Be The Puck has no affiliation with the people listed.
Stochastic 20/80 crossover
Rule and full recordMean reversion · daily
Where today's close sits in the last 14 days' range. Buy a %K/%D cross up in the oversold zone, sell a cross down in the overbought zone.
Best risk-adjusted results against buy and hold: