Trading with Momentum Oscillators
Coordinating Oscillators with Other Indicators
Overview: Oscillators are effectively used along with volume and price indicators. The oscillator judges the strength and speed of price activity, but not the direction. Thus, it may be an initial signal or a confirmation of other signals. Traders must recognize the value as well as the limitations of momentum and need to rely on a set of different signal types for signal and confirmation.
No oscillator or any other indicator should ever be relied upon by itself. Confirmation is required before any trade is entered, because nothing works 100 percent of the time. Even the most reliable signal may be a false signal, representing a coincidence of ...
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