InvestorQ : What exactly is meant by Oscillators and what are the clues that one can get from them for intraday trading?
Anu Biswas made post

What exactly is meant by Oscillators and what are the clues that one can get from them for intraday trading?

Answer
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Aashna Tripathi answered.
1 year ago


Oscillators are not just about direct but also about momentum. Momentum means that how intense or accelerated the trend is and a high momentum in favour means that you can get into a trade with lesser risk and greater expectation of returns. The beauty of intraday trading is that you need to neither be bullish nor do you need to be bearish to take a view. You can take a view on the cycle and actually ride the cycle in both directions. That is where oscillators can be of immense help. Oscillators are extremely useful in identifying when the market sentiments are turning so that the intraday traders can position themselves accordingly. In fact, when the oscillator does not keep pace with the price movement it is an indicator that the price rise could weaken and traders can position themselves on the short side of the trade.