IndicatorsBeginner
An oscillator is an indicator that moves back and forth between fixed levels, or around a centre line, instead of following price directly. Common examples are RSI, the stochastic oscillator, MACD and CCI. Traders use oscillators to spot overbought and oversold conditions, shifts in momentum and divergences. They tend to work best when a market is moving sideways rather than trending strongly.
Related terms: RSI (Relative Strength Index) Stochastic Oscillator MACD CCI Overbought Oversold Divergence