Collection of oscillator type indicators used for EA31337 strategies.
Oscillators are a category of technical indicators used in financial markets analysis. They are designed to identify overbought or oversold conditions and potential trend reversals. Oscillators typically oscillate within a specific range or between certain values, indicating the momentum or strength of a price movement.
Oscillators are considered a subset of indicators since they are technical tools used to analyze price data and generate signals. They differ from other types of indicators like trend-following or volume-based indicators because oscillators are designed to provide information about the short-term price behavior rather than long-term trends or volume patterns.
Common examples of oscillators include the Relative Strength Index (RSI), Stochastic Oscillator, Moving Average Convergence Divergence (MACD), and the Williams %R. These indicators generate values that fluctuate within predefined boundaries, typically between 0 and 100 or -100 and +100, indicating the relative strength or weakness of price movements.
Traders and analysts use oscillators to identify potential buying or selling opportunities, divergences, and to gauge market conditions such as overbought or oversold levels. They can be helpful in identifying potential trend reversals or determining the strength of an ongoing trend.
In summary, oscillators are a type of indicator used in technical analysis that measure price momentum and provide insights into overbought or oversold conditions. They are considered a subset of indicators due to their specific function and characteristics.