The indicator of price oscillator (sometimes called indicator percentage price oscillator) incorporates two moving averages (one short and a long) and is similar in many respects all other indicators oscillating, except that it does not have overbought or oversold areas. Instead gives you a buying signal when the indicator crosses from 0 and a sign of sale when crosses under 0.
These crosses all day long could simply trading, but probably would be profitable to do so because you get a lot of fake crosses, particularly when the market is a trend towards the sides.
Instead, as with so many indicators, you are much better divergence trading patterns. This is just where the price make new casualties (or appears to be down) but the indicator in question is unable to make new casualties, or vice versa if the market is making new highs.
What this basically tells you is that the trend is beginning to run out of momentum.So when this pattern of divergence, you can think about adopting a position immediately or when indicator then traverses the level 0.
You can see what I mean looking at 5 minutes from earlier today EUR/USD chart.In this case the price fell to S1 level at the beginning of the day, but at this level for the second time testing price bounced upwards this level of support and there was a clear pattern divergence on precios.También oscillator indicator can be seen that there was a pattern of pleasant divergence (and a towards top crossover) in the indicator MACD thus, addition of a change in the trend, as indicated by Supertrend indicator, so this would have been a nice trade high probability.
Anyway the point is that the price oscillator is another indicator technician to add to your arsenal.No is nothing revolutionary, but provide you with some decent trade signals when you start to see some patterns clear divergence, especially when combined with other similar indicators or flag MACD.También is useful to indicate the trend, because if the indicator is above 0, the pair is currently in an upward trend, and if it is below 0, then is obviously in a downward trend.
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