Forex oscillators - types and purpose
In technical literature you can find a comparison of the oscillator with a rubber ball. His behavior very much resembles the behavior of the ball when it is immersed in water or when taking it into the air.
If the ball is immersed in the water, he will inevitably strive to jump out of the water, and we do not know in advance what depth it goes down and what time it appears on the surface of the water. But unambiguously, we know that, in the end, it will be on the surface of the water. If the ball rises into the air, it will inevitably fall to the ground, although the height on which he will be flown is in advance. So oscillators behave like themselves, they are inevitably returned to the average values of the indicators.
In trend analysis, oscillators help to solve the tasks of three directions:
Serve indicators of discrepancies. When the price charts diverge, the price and oscillator can report the possible completion of the current trend;
Serves overbought / oversold indicators. But here you need to be extremely careful - on strong trends oscillators give a lot of false signals, so it is necessary to use them on horizontal trends (Flat);
Serve indicators to assess the potential of the trend. Help to estimate the tempo of the market.
The list of oscillators listed below, which enjoy the most popular among professional traders.
Stochastic Oscillator: This indicator allows you to determine the direction of the trend and its reversal by tracking the closing prices within the last series of recession and vertices. Shows good results with lateral trend (Flat) ...
RSI Relative Power Index: This indicator is intended to determine the force of bearish or bovine moods in the Forex market, as well as to determine the likelihood of changing the existing trend. On pronounced trend markets gives a lot of false signals ...
CCI Commodity Channel Index: It is a fairly universal tool that allows you to fix a large spectrum of signals for sale and purchase. It is also used to define reversal moments, strength trends and extremes on the price schedule ...
The percentage range of Williams (% R): a simple and dynamic oscillator, effective to determine the speed of price, as well as to estimate overbought states and oversold in the market. Like other oscillators, works well on Flat ...
Analysis of oscillators should be carried out, guided by common rules and methods for them, familiarize themselves with whom on the analysis of oscillators analysis - General rules. udenlandske casinoer
If the ball is immersed in the water, he will inevitably strive to jump out of the water, and we do not know in advance what depth it goes down and what time it appears on the surface of the water. But unambiguously, we know that, in the end, it will be on the surface of the water. If the ball rises into the air, it will inevitably fall to the ground, although the height on which he will be flown is in advance. So oscillators behave like themselves, they are inevitably returned to the average values of the indicators.
In trend analysis, oscillators help to solve the tasks of three directions:
Serve indicators of discrepancies. When the price charts diverge, the price and oscillator can report the possible completion of the current trend;
Serves overbought / oversold indicators. But here you need to be extremely careful - on strong trends oscillators give a lot of false signals, so it is necessary to use them on horizontal trends (Flat);
Serve indicators to assess the potential of the trend. Help to estimate the tempo of the market.
The list of oscillators listed below, which enjoy the most popular among professional traders.
Stochastic Oscillator: This indicator allows you to determine the direction of the trend and its reversal by tracking the closing prices within the last series of recession and vertices. Shows good results with lateral trend (Flat) ...
RSI Relative Power Index: This indicator is intended to determine the force of bearish or bovine moods in the Forex market, as well as to determine the likelihood of changing the existing trend. On pronounced trend markets gives a lot of false signals ...
CCI Commodity Channel Index: It is a fairly universal tool that allows you to fix a large spectrum of signals for sale and purchase. It is also used to define reversal moments, strength trends and extremes on the price schedule ...
The percentage range of Williams (% R): a simple and dynamic oscillator, effective to determine the speed of price, as well as to estimate overbought states and oversold in the market. Like other oscillators, works well on Flat ...
Analysis of oscillators should be carried out, guided by common rules and methods for them, familiarize themselves with whom on the analysis of oscillators analysis - General rules. udenlandske casinoer
