The Price Oscillator uses two moving averages.
✔ One shorter-period, and one longer-period.
✔ When 2 MAs cross each other the PO reads 0.
The Price Oscillator technical indicator can show overbought and oversold areas.
Strategy:
Only go long in an uptrend.
Only go short in a downtrend
Uptrend strategy: Look for an oversold situation to open a buy position. Close when get to overbought then close some more when crossing back to the zero line.
Downtrend strategy: Look for an overbought situation to open a sell position. Close when get to oversold then close some more when crossing back to the zero line.
✔ One shorter-period, and one longer-period.
✔ When 2 MAs cross each other the PO reads 0.
The Price Oscillator technical indicator can show overbought and oversold areas.
Strategy:
Only go long in an uptrend.
Only go short in a downtrend
Uptrend strategy: Look for an oversold situation to open a buy position. Close when get to overbought then close some more when crossing back to the zero line.
Downtrend strategy: Look for an overbought situation to open a sell position. Close when get to oversold then close some more when crossing back to the zero line.