Section 4: Oscillators & Others
Technical Analysis / Indicators
In this section, oscillators that may show momentum, and other indicators are discussed. This gives traders a view on the pace of the market if it's increasing or decreasing its movement.
Relative Strength Index (RSI)
The RSI is a simple oscillator that shows momentum in the market. It also shows overbought and oversold values.
The Stochastic Oscillator is quite similar to the RSI. It shows the momentum as well as extremes in the market. In addition, there is a signal line that triggers early changes in direction and momentum.
Divergences give early warnings of a possible reversal. This gives traders more confluence when trading reversals as well as warning signs to exit an existing trend following trade. Divergences are seen with momentum oscillators like the RSI.
MACD, Stochastic & RSI Oscillators
In this video, we talk about all 3 indicators. We compare similarities and differences among them and show how we can integrate them in our trading.