It’s no secret that Chief Income Strategist Marc Lichtenfeld has investing chops – but he didn’t get to where he is today without a little help from the investing legends…
In this week’s episode of State of the Market, Marc recounts how he crossed paths with some of the most fabled pioneers of technical analysis – the study of stock charts and the patterns they reveal.
In addition to meeting the “Godfather of Technical Analysis,” Marc once spent an afternoon picking the brain of the inventor of the stochastic oscillator (also known in finance as stochastics).
Stochastics measure momentum in a stock. You can see stochastics at work in the chart below, which tracks the performance of the Dow Jones Industrial Average.
Stochastics are shown at the bottom, among the range of 20 to 80. When stochastic readings rise above 80, the stock is overbought. When the line dips under 20, the stock is oversold.
Tracking momentum of a stock reveals incredible buying and selling opportunities…
But, as Marc warns in today’s video, stochastic oscillators aren’t crystal balls…
They work best in conjunction with support, resistance and other forms of technical analysis. Together, these indicators can paint a clear picture of investor psychology…
Be sure to view today’s edition of State of the Market to learn how to track market fear and greed and, most importantly, time your entries and exits for substantial gains.
Good investing,
Kyle
