Defining Oscillators

Oscillators are technical analysis tools that bound within a predefined range. Oscillators are placed below the main chart area and not within the chart area as common indicators.

This is an improved version of the popular Relative Strength Index (RSI) specially designed for cryptocurrency and tech stocks trading. The new oscillator combines RSI readings and key technical analysis signals into a single tool.

 

RSI PRECISION PLUS MACD & SMA SIGNALS (FREE ON TRADINGVIEW)

RSI PRECISION is an oscillator that generates RSI readings by also taking into account price volatility and momentum. The great advantage is the accuracy of readings at high timeframes (monthly, weekly) and during market tops and bottoms. RSI PRECISION can analyze every volatile financial asset class in the world, such as the Nasdaq stocks and cryptocurrencies.

RSI Precision can be used for several tasks:

  • Recognize overbought/oversold market levels more accurately than the classic RSI
  • Recognize RSI support and resistance levels
  • Identify key divergences between RSI slope and price slope

3 Trading Signals:

  • RSI Precision Crossovers/Crossunders
  • MACD Crosses (over/under its signal line)
  • SMA Golden Cross & Death Cross (50/200)

You can add RSI PRECISION for free on TradingView: » https://www.tradingview.com/v/kBpWBCXU/

%R Larry Williams

(Williams %R)

Usage: Identifying Overbought/Oversold Market Levels

◙ Trading: Detecting Trend Continuation / Momentum Failures

Standard Settings: 14 Periods

 

Introduction to Williams %R

Developed by Larry Williams, Williams %R is a momentum oscillator widely used for its ability to identify overbought and oversold market levels and to detect momentum failures.

-Williams %R oscillates from values 0 to -100

-Williams %R shows the level of the close relative to the highest high for a particular period:

  • When Williams %R is near zero (0), it shows the price is trading near the highest high (look back period)
  • When Williams %R is near -100, it shows the price is trading near the lowest low (look back period)

-Similarly, the Stochastic Oscillator shows the level of the close relative to the lowest low (► more about Stochastic)

-Williams %R and the Fast Stochastic Oscillator produce the exact same reading, only the scaling is different

RSI PRECISION -AN ADVANCED VERSION OF THE CLASSIC RSI

Created by Giorgos Protonotarios, RSI PRECISION is an advanced version of the classic RSI that works on TradingView and it is free...Created by Giorgos Protonotarios, RSI PRECISION is an advanced version of the classic RSI that works on TradingView and it is free. The oscillator enhances RSI with market momentum and periodic price volatility.

◙ Usage: Identifying Overbought/Oversold Market Levels

◙ Trading: Trading any market, and especially Highly Volatile Markets (such as the cryptocurrency market)

◙ Standard Settings: 14 Periods or 21 Periods

□ Add RSI PRECISION on any TradingView chart here, it is 100% free: https://www.tradingview.com/script/irWH8Wkm-RSI-PRECISION/

 WHAT IS RSI PRECISION?

RSI PRECISION is a technical analysis oscillator that identifies market tops/bottoms in any timeframe. The oscillator is very easy to use and enhances RSI readings with periodic market momentum and price volatility.

Moving Average Convergence Divergence

(MACD)

Usage: Trend-Following Momentum Indicator

◙ Trading: Trading Signals from Crossovers | Slope Divergences

Standard Settings: 12-period Fast, 26-periods Slow, and 9-period EMA

 

Introduction to MACD (Moving Average Convergence Divergence)

Developed by Gerald Appel in the 1970s, MACD is a trend-following momentum indicator and one of the most widely used technical analysis indicators worldwide. The oscillator can evaluate the momentum of the trend and generate reliable trading signals.

  • The MACD is the difference between a 26-day and 12-day EMA (exponential moving average)
  • The Signal Line is a 9-day EMA which works a trigger for buying/selling the market

The MACD can be used for trading any financial market (Foreign Exchange, Equities, Commodities) in multiple timeframes. There are two ways to visualize MACD:

(a) 2 classic lines system (MACD and Signal Line) and focus on where they are interacting

(b) MACD Histogram (and focus on crossovers above/below zero)

The MACD Histogram

Developed by Thomas Aspray, the MACD-Histogram shows the distance between the MACD line and the signal line. 

Trading with Oscillators

What are Trend Indicators? Trend indicators are technical analysis tools that use price action to recognize price patterns and identify the true direction of the trend.

 

Oscillators are tools of technical analysis that bound within a range. This predefined range helps traders to identify if the price of a financial asset is found in overbought/oversold levels. 

Oscillators can prove a useful tool for:

  • Identifying Overbought/Oversold Market Levels
  • Evaluating the Momentum of the Trend
  • Spotting Trend Reversal/Continuation
  • Generating Trade Signals

But how easy it is to spot a failure in the momentum of the trend?

“When a long-term trend loses its momentum, short-term volatility tends to rise. It is easy to see why that should be so: the trend-following crowd is disoriented.” -George Soros

This tutorial includes information and tips when trading with the following oscillators:

  1. Moving Average Convergence Divergence (MACD)

  2. Relative Strength Index (RSI) and StockRSI

  3. RSI PRECISION +MACD & SMA
  4. RSI PRECISION -The New Enhanced RSI
  5. Williams %R

  6. Stochastic Oscillator

  7. Momentum Oscillator

  8. Awesome Oscillator (AO)

  9. DeMarker Indicator

  10. Average Directional Movement Index (ADX)

  11. Gator Oscillator (GO)
  12. Commodity Channel Index (CCI)

Commodity Channel Index

(CCI)

Usage: Identifying Overbought/Oversold Markets

◙ Trading: Trading Signals on CCI Readings | Trading Slope Divergences (More reliable signals in ranging markets)

Standard Settings: 14 Periods (Recommended 20 Periods)

 

Introduction to CCI

The Commodity Channel Index or CCI is an oscillator that aims to identify overbought/oversold market levels. CCI is able to measure the current position of a financial asset with respect to its moving average. CCI can also signal trades as you can see below, these signals are more reliable in ranging markets.

 

Calculating CCI

CCI = (TP - SMA (20) of TP) / (Constant x Mean Deviation)

Where:

  • TP (Typical Price) = (High + Low + Close) / 3
  • Constant = .015