The Handbook of Technical Analysis + Test Bank_ The Practitioner\'s Comprehensive Guide to Technical Analysis ( PDFDrive )

Window Oscillators and Overlay Indicators

fIgure 8.5 Overbought at Historically Significant MACD Levels on the Daily Chart

of Amazon.com Inc.

Courtesy of Stockcharts.com

fIgure 8.6 Oversold on the Stochastic Oscillator on the Daily Chart of Silver.

Source: MetaTrader 4

equilibrium and zero Line Crossovers

Another way a window oscillator can indicate buy or sell signals is via the crossing

of the equilibrium value, which is represented by any of the following penetrations:

■ (^) Fifty percent level crossing in bounded oscillators
■ (^) Zero line crossing in unbounded oscillators