The Stochastic Oscillator is a momentum indicator that measures the location of the closing price on a chart in relation to the high to low trading range over a period of time. This indicator was created by George C. Lane in the late 1950s. The Stochastic Oscillator isn’t following the trend in price or volume, what is quantifies is the speed and momentum of price action itself on the chart. On most charts, the momentum of price movement changes before its directional move. Bullish or bearish divergences in the Stochastic Oscillator can be used as a signal to trade a high probability that a reversal in price action ... (full story)