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Oscillators: Tools to Make Trading More Effective

An oscillator is an indicator that helps identify when a price reverses and for trades when a sideways trend occurs.

Oscillators are usually used for trading on trend reversals. At the same time, they can be used to trade in the direction of a price movement.

Traders use oscillators for the same purpose as other indicators: to more accurately forecast how an asset’s price will change and find the best moments to enter the market.

The ability to properly use indicators helps improve trading performance. Examples of oscillators are RSI, Stochastic, and MACD.