Stochastic Divergence – what they look like. and New ones setting up

[youtube NSkqBBWBEIQ]

“Stochastics is a momentum oscillator,” “It doesn’t follow price, it doesn’t follow volume or anything like that. It follows the speed or the momentum of price. As a rule, the momentum changes direction before price.” He made a comparison to a rocket speeding away from the Earth. Before the rocket can turn and head back to the ground again, it must first start to slow down. “The slowdown of momentum happens before the change of direction,” continued Lane. “It’s a leading indicator to the change in direction. That’s what Stochastics does. It predicts the direction of movement.

I love that quote “It’s a leading indicator to the change of direction”

Just the simple understanding of momentum and the example of the rocket. You can see how stochastics can give you that added edge to finding a good entry point. I use stochastics as the foundation to the High Probability Setups (HPS) method. By combining basic trends, support, patterns and the stochastics, you really do find the Highest Probability area where a stock will turn

Day trading rockstar John Kurisko of Day Trading Radio shares his trades live on his daily radio show.