On a lower timeframe you might look for Zero-crossing and then The only way you will know which works best for you is to play with the settings and see how the oscillator lines up w/ your strategy and with your other indicators. You can stack the deck in your favor with correlation of trend to market indices. Trend & momentum indicators require confirmation on higher timeframe. No indicator can be used in isolation or on a single timeframe. (not to be used on the lowest timeframes due to lag). Signal-crossing, when oscillator crosses its average, is a sign that a change is a-coming but only works when not in chop. Zero-crossing is used to verify that the triggers from your other indicators now have momentum. Crossing above Oversold and Crossing below Overbought. Direction Change: bullish when below midpoint and starts ascending,ĭirection Change Trading is the most traditional use of oscillators. Signal Line Crossing (Variance in Price): bullish when crossing from below to above the oscillator's moving average.Zero-crossing (Delta of Price): bullish when crossing above midpoint (the midpoint is 'usually' zero but can also be 50 or something else).There are three conditions to observe when using Oscillators.
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