Weekly & Daily Stochastics by Vitali Apirine
Indicators play a big role in a technical trader’s life. They act as a GPS to help you navigate around price movements. But there’s no one way to use them. Here’s how you can combine two stochastic oscillators and use them with moving averages and support/resistance levels to help identify corrections and trend reversals.
Technical analysts are familiar with George Lane’s stochastic oscillator. It is a momentum indicator that shows the location of the close relative to the high–low range over a set number of periods. The weekly & daily stochastic is different in that it shows the location of the close relative to the high–low range for two different periods. It uses the slow (that is, three-day smoothed) version of the stochastic oscillator in its calculation ...