Window Oscillators and Overlay Indicators
fIgure 8.14 Oscillator Support- and Resistance‐Based Buy and Sell Signals on the
30‐Min Chart of Nikkei 225.
Source: MetaTrader 4One such example is the Stochastic RSI, where the stochastic of RSI values are
calculated and plotted as a window oscillator. Practitioners look for potential
bullish and bearish indications via any of the previous seven approaches to ana-
lyzing an oscillator. In Figure 8.15, notice that the stochastic RSI pinpoints po-
tential buying dips (indicated at the dotted time lines) in an uptrend on the daily
chart of Apple Inc.fIgure 8.15 Oscillator‐on‐Oscillator Analysis on the Daily Chart of Apple Inc.
Courtesy of Stockcharts.com