Posts Tagged ‘stochastics’

How Futures Traders Use Stochastics

Saturday, December 8th, 2007

Popularized by legendary futures trader George Lane, the stochastic oscillator (commonly called stochastics) is a timing indicator widely used by futures traders to indicate overbought orĀ  oversold positions. Stochastics compares closing price to price range over a specified time period. The driving principle can be summarized as follows: (more…)