We continue on getting acquainted with the indicators. The indicator signal is the result of analyzing the price dynamics of an asset using a mathematical indicator algorithm. The analysis of the algorithm is based on price. We agreed with the assumption that the price on the market takes into account the events of the past, present and future in the economy. Based on this, we study technical analysis and do not engage in fundamental analysis.
We reviewed different trend indicators and oscillators provided to trader by the BitSeven platform on its trading terminal. But each option has its strengths and weaknesses.
Our goal is to define entry and exit points of transactions. To come up with an effective trading strategy on the market, we need knowledge to analyze the price chart using candlestick models and interpret signals, we have selected trend and counter-trend indicators.
Now let’s start, go to www.bitseven.com on the BitSeven platform. Select the “Leverage Trading” tab and open the “Indicators” tab. Today we will get acquainted with the work of the Awesome Oscillator indicator. Using the context menu, we can choose the settings for the presentation of the indicator signal on the price chart in the trading terminal window for our taste or leave the default settings.
The signal of this indicator is presented in the form of a histogram in the window below the price chart. Price analysis is performed by the indicator using simple moving averages. Green bars indicate an increase in the strength of price movement, and red bars represent a decrease in price strength. If the difference between the two previous and next bars is positive, then it is located above the zero line. Otherwise, it is below the zero line.
Signal to buy. The bars are located above the zero line, the first bar is red or green and the third bar is green above the second bar red.
A signal to sell. The bars are located below the zero line, the first bar is red or green and the third bar is red above the second bar green.
This indicator provides signals for buying and selling when the price moves on the market on the flat.