In this module we are going to look at oscillators and sentiment indicators. Oscillators move up and down – they oscillate between the extremes and they indicate overbought and oversold conditions.
The oscillator tends to go between limits, or oscillate, and these limits represent times when the market is stretched, often associated with the need to change. We talk about overbought and oversold conditions, and you can think of these as when the market has gone too far too fast and quite possibly needs to correct or consolidate.
Module 7 – Oscillators and Sentiment Indicators
Using Oscillators in Trending Markets
Commodity Channel Index
Relative Strength Index
Moving Average Convergence/Divergence
The Importance of Contrary Opinion