What is Indicator and Oscillator?
As a result of observing past movements in financial markets, future predictions are made through technical analysis. The indicator is in the simplest sense technical analysis ‘indicators’. In other words, mathematical models that give an idea to investors about price direction and trend continuation in the markets are called indicators.
Oscillator is called indicators that determine the correction levels of the prices moving in a horizontal band in the trend.
What are their types?
Indicators statistically analyze different historical situations and each indicator should be used for different situations. For example; While trend following indicators are used in vertical market analysis, momentum indicators should be used in horizontal market analysis.
Indicators and Oscillators can be examined in 5 sub-categories as below.
1. RSI (Relative Strength Index)
2. Stochastic Oscillator
5. CCI (Commodity Channel Index)
1. Moving Averages
• Simple weighted moving averages
• Weighted moving averages
2. Bolinger Bands
What are the indicators for and how are they used?
As mentioned in its definition, the indicators statistically analyze past market movements and thus lead the way for future investments. There are a few important points here. The first is that the indicators alone are not sufficient to make an investment decision. The trader, who is a trader in the financial markets, must decide on his own initiative by evaluating the indicators (indicators). Another important point is that the trader should make use of more than one indicator while making the investment decision. The estimate should be provided by examining more than one indicator.
The indicators used frequently in market analysis can be easily followed thanks to the useful interface offered by the Meta Trader Platform used by reliable Forex firms, and as a result of this follow-up, investors can give buy and sell instruction or advise their professional advisor.