In this issue we continue the overview of the most important terms in technical analysis with an explanation of their meanings.
Oscillators
Market technical indicators that show whether an underlying asset under study is in an overbought or oversold situation. The underlying is overbought and therefore vulnerable to a price pullback if the oscillator reaches an upper extreme value. The underlying is oversold and therefore vulnerable to a recovery movement when the oscillator reaches a lower extreme value. In addition, deviations (divergences) in the development of the price curve and oscillator provide important information about a possible turnaround in the price curve. Well-known and popular oscillators include RSI, momentum and stochastics.