Video Brought to you by br br Join and get 14 days FREE br br Get Live News, Trade Alerts, Weekly Watchlists and more on daytradingradio.com br br How to read and recognize a stochastic divergence , One of the best indicators to use for finding reversal in trends. Developed by George C. Lane in the late 1950s, the Stochastic Oscillator is a momentum indicator that will changes direction before price. As such, bullish and bearish divergences in the Stochastic Oscillator can be used to foreshadow reversals. This was the first, and most important, signal that Lane identified. Where most indicators reflect the past price action, this one will show a trend change before the major move in the stock or index that it is attached to.