Anyone use oscillation indicator (Stoch, RSI etc) ?

V

victorycountry

Hi

Does anyone use oscillation indicators to trade??
I know many traders use oscillation indicators like Stoch and RSI....
just wonder what are they for, why do you use them, and most importantly, are they really reliable to use??
I use trend indicator (e.g. MA) and range estimator (BB, channel etc).
Knowing that oscillation indicators are another widely used tool, I want to get to know more about oscillation indicators.

Thanks in advance
 
Last edited:
I use divergences on a double stochastic to confirm or negate a signal....have never found "overbought, oversold" conditions particularly useful. We all see things differently and you have to find what speaks to you.
 
All useless. Just read the bars, their size, relative to previous bars, their close relative to the open and mid-point.

Few indicators provide information which is relatively hard to read. For instance, StopATR may be useful for spotting turning points (extremes).
 
Dinosaur_Supervisor said:
All useless. Just read the bars, their size, relative to previous bars, their close relative to the open and mid-point.

Few indicators provide information which is relatively hard to read. For instance, StopATR may be useful for spotting turning points (extremes).
More...
"Useless" for you, useful for me.
 
Buy1Sell2 said:
yes
More...
Thanks you for reply ,... you have posted more than 10,000?? ...I presume you are one of experts here...I m pretty sure I have seen your ID a few times when I was following experts like Jack Hersey, DB phoenix, nihabashi, metal, etc... but I didnt know you have contributed as much as them... anyway thanks...just surprised to find out I have missed out on someone with your contribution...I will definitely search for your contribution here on ET and absorb your knowledge :))
 
Personally, I use max one indicator, because :
- they give quite the same signals
- you can't focus with price action if you get several indicators.
RSI is simple, works with every assets, gives less false signals than stochastics, so it is my favorite.

IMO, there are 3 ways to use RSI :
- Trend following
- Divergences (less buying pressure compared to price increase, or less selling pressure compared to price decrease).
- Break of an equilibrium (buyers or sellers take the lead).

Maybe there are other ways to use RSI ?
But you should masterize first price action and classic chartism before using indicators.

CM
 
I agree with Chris, too many studies can cause redundancy and confusion That is not to say there are not those who use them effectively, we are all different. Buy1Sell2 may be Paul Tudor Jones for all I know so this is nothing personal but be careful of judging people by the number of posts.

BTW, when I spoke of a double stochastic, that is not two stochastics but a sto of a sto, which smooths the study.
 
The oscillator indicators is very good for the new traders who are heavily dependent on the indicators signals. Infact it work good on all time frame and currency pairs well. But if you do use only Stochastic indicator it should lead to significant fake signals as well when market have some news release and market have some spike up or down. So better to neglect this fake signals you should have to use combination of other indicators with Stochastic.
 
You must log in or register to reply here.
Back
Top