MT5 indicators: Oscillator

Hello Deriv Community,

Oscillators are a useful tool in technical analysis for making trading decisions when there is no strong trend in the market. These indicators show how the price deviates from its average value and can help predict corrections or changes in the direction of price oscillation. The saucer signal, a zero line crossing on the decrease, and the two pikes signal are all potential signals to buy or sell, with the direction of the signal depending on whether it is above or below the zero line.

The Awesome Oscillator (AO) is a technical analysis tool that can provide signals to buy or sell a financial asset based on specific patterns. These signals, which include the saucer signal below zero, a zero line crossing on the decrease, and the two pikes signal higher than the zero line, are reversed for sell signals compared to buy signals. These patterns may suggest potential changes in the direction of price oscillation or the likelihood of a correction in the market.

Calculation:

AO is a 34-period simple moving average, plotted through the central points of the bars (H+L)/2, and subtracted from the 5-period simple moving average, graphed across the central points of the bars (H+L)/2.

Where to find the Oscillator indicator

  1. Log in to your MT5 account.
  2. Click Insert on the toolbar menu.
  3. Click Indicators.
  4. You will find the Oscillator indicator on the menu that opens.

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