George Lane is a revered name in the trading world, primarily due to his groundbreaking contribution in creating the Stochastic Oscillator. This indicator has become one of the most popular technical analysis tools among traders. This article will explore the life and career of George Lane, and how he developed this revolutionary indicator.
Who Was George Lane?
George Lane was born in 1921 in Chicago, USA. Before entering the trading world, Lane was a physician who ran a clinic inherited from his father in the industrial area of Chicago. However, after his father’s retirement, Lane decided to close the clinic and pursue a career in commodity trading.
In 1950, Lane took a significant step by purchasing a membership at the Chicago Open Board of Trade, now known as the MidAmerica Commodity Exchange. However, his early trading career was not smooth, as he often faced losses in the market.
His fortunes began to change when a broker's clerk introduced him to the Taylor method, which focused on three-day price movement cycles. This marked the beginning of Lane's transformation into a successful trader.
In addition to trading, George Lane also pursued a career as a financial educator. He worked with investment firms and taught technical analysis methods to investors and financial professionals. Lane later took over a specialized investment school in the United States after the owner’s death, serving as President of Investment Educators Inc. in Watseka, Illinois, until his passing on July 7, 2004.
The Journey to Creating the Stochastic Indicator
George Lane did not create the Stochastic Indicator overnight. Early in his career, Lane felt that fundamental indicators were not sufficient for trading, prompting him to delve into technical analysis. Initially, he struggled with the complexities of trading charts.
Over the years, Lane diligently studied market movements and price trends. He aimed to develop a method that could help traders time their market entries and exits based on overbought and oversold conditions. His efforts culminated in the formulation and development of the Stochastic Indicator.
Lane designed the Stochastic Indicator not to follow price or trading volume, but to show the momentum of price changes before the market reverses direction. The method proved highly effective, and Lane himself was able to use it to achieve consistent profits across various markets.
The Legacy of the Stochastic Indicator
The Stochastic Indicator created by George Lane has endured for over 50 years and remains a highly popular technical analysis tool among traders. Its effectiveness is not only evidenced by Lane’s own use but also by its adoption by thousands of traders worldwide.
In recognition of his outstanding contributions, George Lane was posthumously honored with an award by the Market Technicians Association in 2012. Throughout his career, Lane relied on just three main technical tools: the Stochastic Indicator, trend lines, and Fibonacci Retracement levels. This combination helped him achieve success in the trading world.
George Lane's story is an inspiration in the trading community, not only because of his invention of the Stochastic Oscillator but also due to his dedication to educating other traders. The Stochastic Indicator he created remains a vital tool for many traders and continues to be used today. His life story exemplifies that with perseverance and innovation, a trader can achieve extraordinary success.
