Guidebook No. 1 of the Samxon Market Indicator Series. A 12-page PDF guide by Paul Samson (Samxon.ca).

Most traders treat stochastics as a simple overbought/oversold signal, and that approach fails in trending markets. This guidebook shows a better way to read it: as a measure of where price sits within its own recent range, and therefore where the market sits within its cycle.

Inside:

• The indicator’s origins with George Lane in the 1950s
• How the %K and %D lines are calculated
• Fast, slow and full stochastics, plus threshold and look-back settings
• Five core setups: %K/%D crossover, extreme-zone crossover, divergence, pinned readings and midline behaviour
• A full bottom-top-bottom worked example
• Common mistakes, pros and cons, and a quick-reference checklist

The central idea: the transition out of a pinned zone, not the pinned zone itself, is where the cycle is turning.

Instant PDF download. For educational purposes only; not financial advice.