A MetaTrader Oscillator Indicator is one that fluctuates up and down a centerline or around set levels as its value alters over time. We can have oscillators remain at extreme levels (oversold or overbought) for long periods, but normally they cannot trend over a long period of time. An oscillator is a data that moves back and forth between two points. I can go on further to say that an oscillator indicator is an item that would go somewhere between a point in space A and point B. Think of it when you press the oscillating switch on your electric fan.

For once I’ll love you to view the technical indicator as an “on” or “off” switch. It is true that they signal a buy or a sell trigger, with exceptions being when the oscillator is not at the end of the buy/sell range. The Relative Strength Index (RSI), Parabolic SAR and Stochastic are all oscillators. They are developed to trigger possible reversal, having the opposite trend running along beforehand whilst price is about to change.

There’s a hybridization that occurs when you place various indicators on your trading system. Quite a lot of times I see traders use a single oscillator, sometimes two on their trading system and make their trade decisions based on the triggers set by these parameters. I believe that this is wrong in a sense that oscillators give investors just a 2-diementional view of what they are meant to analyze. A 3-dimentional view is required if you must trade effectively.

This is why I employ every investor out there to use a spectrum of indicators so as to get a more concise view of the market. Oscillator indicator is specialized in describing certain aspect of the market functions. A lot of times we see oscillators lag due to how they analyze data whilst the get to the final product of their calculations. Of course, historical is vital in the currency market, it can sometimes put set you behind the actual price action that is present on your screen. I emphasize the use of a spectrum of indicators some of which should be leading indicators (indicators that give you a more current view of the market).

Investors generally fell that oscillators are generally late when it comes to giving information about price action. I affirm to this, but yet there’s need to understand the role price actions play in the currency market and the wider financial market. You can get a broad view of the market if you use numerous indicators, thus giving you accurate information on what is happening during the trading session. It is sometimes cumbersome when you think of the fact that you might look at volume, momentum, market velocity et al. It is a big market and it would be wise to get a view of the market via a group of indicators, so you can make buy/sell decisions that are based on informed decisions.