In short, oscillators are designed to measure the underlying strength of a price movement in the market. They measure changes in price rather than just the price level. This is done by measuring the distance of a price change within a time period and assessing if it is significant enough to signal the trader to take market action. Oscillators usually are used in conjunction with other trend analysis tools. They are most valuable in a non-trending market with prices fluctuating within a trading range.
All oscillators have similar charts.
There is a base at the bottom and a midline around which the prices oscillate. Good charts can provide valuable information to the trader, but by themselves do not yield enough clues to ensure good trades. Successful traders must know how to get into and out of the market at the right time to catch the move they are looking for. Several types of oscillators are available to help traders measure the timing for trades. The RSI looks at the average of the up closes and the average of the down closes for a given period.