Investment Educators Inc

At first, says Lane, "I have nothing worked. One of the veterans of the exchange as something at the end of the day came to me and asked how things were going. Every evening after auction we went to a local bar, and if I put him whiskey and he taught me everything he knew about the markets. He introduced me to the method of Taylor, who represents the three-day trading cycle. Lane began to understand the rules of trading and achieve success in the exchange. He subsequently became president of Investment Educators Inc. "I did bids all day and night we met" – says Lane.

There he invented in 1964 of "stochastics", the widely used momentum indicator. "Stochastics measures the momentum (momentum) prices – explains Lane. – If you imagine the missiles fired into the air, then before it starts to fall down, speed it necessarily decreases. Momentum is always changing direction to the price … This is a very complex instrument. " According to the book by John J.

Murphy "Technical analysis of futures markets," Stochastic "is based on the observation that as prices, the prices tend to close the upper limit price fluctuations. Conversely, if trends down, prices tend to close nearer to the lower limit of the range. In the stochastic process uses two lines:% K line and the line of% D. Line% Dbolee important, as reported by major signals. " "We had a line of% A and% B, – we have twice passed the entire alphabet, developing the system.