Integrated Technical Analysis
- Chart pattern breakouts and pullbacks in oscillator action
- Oscillator‐on‐oscillator analysis (e.g., Bollinger bands on RSI, moving average
of volume, etc.)
The right choice of oscillator and lookback period is also important. Here is a
very brief guide for choosing an oscillator:■ (^) To identify current price relative to the last n periods: Stochastic oscillator
with lookback values that are tuned to the dominant underlying cycles in the
market
■ (^) To identify statistically overbought/oversold (OBOS) levels: CCI indicator
■ (^) To identify price changes between current and prices over the last n periods: Ra-
tio and spread‐type momentum indicators, that is, MOM and ROC indicators
■ (^) To identify volume changes over last n periods: Volume bars, accumulation/
distribution, OBV, money flow indicator, and so on
■ (^) To identify changes in average price over last n periods: RSI oscillator
■ (^) To identify changes in average bar range over last n periods: ATR indicator
The following charts are some examples of price‐oscillator agreements in ac-
tion in various markets.
Figure 27.36 depicts a price‐oscillator agreement at Point X, comprising a
channel top, a 161.8 percent Fibonacci projection, and overbought signals on the
cycle‐tuned stochastics on the four‐hour USDCHF chart.
Figure 27.37 depicts price‐oscillator agreements comprising prior support and
oversold signals on the RSI and cycle‐tuned stochastics on the daily Silver chart.
Figure 27.38 depicts a price‐oscillator agreement at Point X, comprising trend-
line barriers, a 38.2 percent Fibonacci retracement, and overbought signals on the
cycle‐tuned stochastics on the four‐hour Gold chart.
fIgure 27.36 Price‐Oscillator Agreements on the Four‐Hour USDCHF Chart.
Source: MetaTrader 4