Reading between the lines by John Navarte Reading between the lines by John Navarte Charting oscillators is one of the most powerful technical analysis tools available for the private and professional investor. In this article, we will consider two standard oscillator constructions. To draw an oscillator, you must specify two quantities and then plot the difference between them daily. A line chart is used to connect the plotted points. When the oscillator is drawn below the price bar chart, the two charts can be compared.
Oscillators usually involve moving averages.
Because they are accepted indicators of price trend, you should use moving averages with time spans that reflect your investment philosophy. 5 year subscription to Working Money. Free book selection. Limited time offer. Offer ends soon.