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✨Oscillators?
Oscillators are crucial tools in detecting overbought and oversold market conditions, while also providing insights into momentum that can help traders make informed decisions on when to enter or exit a trade.
🤔Oscillators mechanics
Oscillator indicators are essential for Forex derivatives, Stocks derivatives, Crypto derivatives, and more. They determine the market context and assist investors in identifying precise visions for entry and exit points.
Oscillator indicators commonly have a feature of dynamic signal lines that may fluctuate within specific levels to declare overbought and oversold levels. The most common Forex oscillators are the Relative Strength Index (RSI), Commodity Channel Index (CCI), Stochastic, and Moving Average Convergence Divergence (MACD).
📝Oscillators activation
- Press on "Technical analysis" icon.
- Then choose "Oscillators."
- Choose the Oscillator you want to activate.
- Adjust the tool and start enjoying the results
🎯Available Oscillators
1. Stochastic
The Stochastic Oscillator, a popular member of the Momentum indicator family, is known for its impressive capabilities and ability to deliver excellent results when utilized correctly. This powerful indicator relies on two moving average lines, namely %D and %K, which oscillate within the range of 0 to 100. When these two lines intersect within the 0-50 range, it indicates a bearish trend, while an intersection within the 50-100 range signifies a bullish trend.
Furthermore, it's important to note that the Stochastic Oscillator incorporates the concept of overbought and oversold levels, similar to the RSI. When the moving average approaches the 0-50 range, it suggests that the market is currently oversold. Conversely, when the moving average nears the 50-100 range, it indicates that the market is currently overbought. Keep these points in mind to effectively utilize the Stochastic Oscillator in your trading strategies.
Buy with Oversold Level
If you spot the two moving average lines crossing each other around line 20 (Oversold zone), it's a clear indication of an imminent bullish trend. This is the perfect time to initiate a buy trade and reap the benefits.
Sell with Overbought Level
When the two moving average lines converge around line 80, indicating an Oversold zone, it serves as a clear indication of an impending bearish trend. This presents an opportune moment to consider initiating a sell trade.
2. The Relative Strength Index (RSI)
The relative strength index (RSI) is a technical analysis indicator that traders use to measure the speed at which an asset’s price is moving. This indicator is also used to evaluate whether the asset is in an overbought or oversold position.
The RSI, serves as a valuable tool for traders to gauge the velocity of an asset's price movement. It not only helps in determining the speed but also assists in assessing whether the asset is in an overbought or oversold position.
Using RSI to determine trends
Using the RSI can be advantageous for traders since it helps identify when a trend is about to shift. By observing breakouts at important technical levels in the market, one can detect the initial stages of this change. When it comes to analyzing trends, traders commonly rely on moving averages or channels. Nevertheless, there are other technical indicators that can serve as useful tools, including Aroon and Heikin-Ashi candles.
3. Commodity Channel Index (CCI)
CCI you can measure the current price of the asset about the average price in a given time interval. It is used to predict the reversal of the trend for long trades or to spot divergence or whether the market is oversold or overbought. CCI’s first trading method is to observe oversold and overbought areas.
You know the market is overbought when the green line exceeds 100. When the CCI line crosses the 100 lines on its way down, it is surely time to sell. In the opposite situation, that means when the CCI indicator exceeds -100 so the market is oversold, the moment you notice the green line crosses -100 on its way up, you enter a buy position.
4. Inversion Bollinger
The oscillator consists of two traditional Bollinger Bands indicators, visually depicted as a line that fluctuates between the +3σ and -3σ standard deviations on the chart.
5. Stochastic RSI
The Stochastic RSI technical indicator is a combination of two indicators, namely Stochastics and the Relative Strength Index (RSI). By merging the strengths of both indicators, the Stochastic RSI provides a more precise analysis of overbought and oversold periods of the asset being analyzed. The overbought level is indicated by the 0.8 (80%) mark, while the oversold level is indicated by the 0.2 (20%) mark.
6. Moving Average Convergence/Divergence (MACD)
By analyzing the moving average convergence/divergence (MACD), traders can determine the ideal moments to enter or exit trades. This technical indicator comprises of two moving average lines and a histogram, which provide insights into the trend's momentum and direction.
7. DeMarker
The DeMarker oscillator is a reliable tool for identifying the intensity and trajectory of a trend, as well as locating potential reversal points. The DeMarker oscillator fluctuates between two values, 0 and 1, occasionally surpassing the thresholds of 0.3 and 0.7. Whenever these thresholds are breached, it indicates an opportunity to initiate a trade based on the corresponding prediction.
8. Bears Power/Bulls Power
Bears Power is an additional indicator that is calculated by subtracting the 13-period EMA from the lowest price. While Bulls Power is calculated by subtracting the 13-period EMA from the highest price.
9. Williams %R
Williams %R is a powerful tool used to analyze the movement of an asset's price and identify potential trend reversals. This oscillator operates on a scale from 0 to -100, with periodic crossings at -20 and -80. When Williams %R crosses below -20, it indicates that the asset's price has climbed to an excessively high level.
Conversely, when it crosses below -80, it suggests that the price has dropped to an extremely low level. By monitoring these crossings, traders can gain valuable insights into the market and make informed investment decisions.
10. Gator
Gator serves as an oscillator, capable of appearing as a bar chart, lines, or shaded areas. Typically, it is presented as a bar chart, comprising of red and green bars that begin at the zero level. The green bars signify that the oscillator's bar chart is currently ascending, while the red bars indicate a downward movement.
11. Momentum
Momentum is an oscillator, aiding in the identification of price direction and the discovery of potential trend reversal points. This oscillating line periodically intersects the 100 level as it moves along.
12. The Detrended Price
The Detrended Price Oscillator is a useful tool for identifying price direction and providing signals for potential trend reversals. This oscillator can be represented as a line, bar chart, or tinted area, although it is commonly displayed as a line. As it moves along with the chart, it periodically intersects the zero level, indicating significant price movements.
13. Awesome Oscillator
Awesome Oscillator helps identify the direction of the price and the strength of the trend and find its reversal point. it can take the form of a bar chart or line. The oscillator most often takes the form of a bar chart. The indicator's bar chart consists of red and green bars. They are plotted on the zero level. Green bars indicate a price rise; red ones, a fall.
14. The Rate of Change
The Rate of Change oscillator is a tool that assists in identifying trend direction and reversal points. It is represented by a line that moves with the chart and intersects the zero level at regular intervals.
15. Aroon
Aroon is a type of oscillator that is used to identify the strength and direction of a trend, as well as locate potential reversal points. It consists of two lines: the blue Aroon Up line and the yellow Aroon Down line. These lines fluctuate between values of 0 and 100, and occasionally intersect the levels of 70, 50, and 30. When the oscillator lines cross these levels, it indicates a signal to initiate a trade.
📌Does using Oscillators guarantee the trading results?
You have the option to decide whether or not to execute a trade according to the Oscillator. Using it is super easy! But super sensitive to know that Oscillators help with analytics but do not guarantee the results that might be affected by a lot of factors. Market add-ons are for informational and analytical purposes only. They should not be construed as investment advice or recommendations and you should do your own research and analysis.
👔Subscription process
You can get the paid Oscillator through "Trader's Way" or through buying it in "Market" section.
- Click on the paid Oscillator.
- Choose whether you want to subscribe or try for free.
- Choose your payment plan.
- Choose the sub-account you want to subscribe through. And turn on/off auto-renewal.
- Done. Now you can enjoy your Oscillator.
❌Cancellation process
Once you subscribe to an Oscillator, it won't be canceled till the end of the month. But you can cancel the auto-renewal at any time unless 24 hours before the renewal date.
- On your homepage, choose "Market" then "My purchases and rewards."
- Choose the indicator you want to cancel.
- Turn off auto-renewal.
If you found this article helpful, don't forget to hit 👍!