Oscillator
Technical indicator that moves between two bounds to measure market extremes.
Beginner-friendly explanation
An oscillator is a tool that moves up and down on a chart. It helps see if a market is overbought or oversold.
Example: When the RSI is above 70, it might mean the asset is overbought.
Intermediate-level insight
Oscillators are used to detect potential reversals, divergences, or extreme phases. Most known: RSI, MACD, Stochastic, UO.
Example: A bullish divergence between price (new low) and rising RSI may signal a reversal.
Advanced perspective
An oscillator often combines speed and momentum to produce advanced signals. Some are derived from other indicators or filtered by moving averages.
Example: MACD is based on two moving averages, and its histogram refines momentum strength analysis.
Technical Analysis & Charting
oscillator, indicator, overbought, oversold, momentum, divergence, MACD, RSI, stochastic, UO