Price Oscillator
Price Oscillator
- Price Oscillator Defined
- Price Oscillator as an Overbought & Oversold Indicator
The Price Oscillator uses two moving averages, one shorter-period and one longer-period, and then calculates the difference between the two moving averages. The Price Oscillator technical indicator can be used to determine overbought and oversold conditions as well as to confirm bullish or bearish price moves.
The moving averages lengths are defined by the user. In the chart below of the E-mini Russel 2000 futures contract, the 9-day and 18-day moving averages are used:
When the 9-day moving average crossed over the 18-day moving average, the Price Oscillator crossed over the zero line. When a short-term moving average crosses over a long-term moving average, a bullish crossover occurs. Usually bullish crossovers are considered to be a good time to buy.
Likewise, when the 9-day moving average crossed below the 18-day moving average, the Price Oscillator crossed below the zero line. When a short-term moving average crosses below a long-term moving average, a bearish crossover occurs. Usually bearish crossovers are considered to be a good time to sell.
The Price Oscillator makes it easy to see moving average crossovers. The Price Oscillator is also a means to detect overbought and oversold conditions; this is discussed on the next page.
Price Oscillator Overbought & Oversold
Price Oscillator
- Price Oscillator Defined
- Price Oscillator as an Overbought & Oversold Indicator
The Price Oscillator can be used to detect when a trend is slowing down and potentially could reverse. This occurs when the Price Oscillator moves back towards the zero line. In contrast, when the Price Oscillator is moving away from the zero line, the price trend is accelerating.
Moreover, the Price Oscillator can reveal areas of overbought and oversold, which is shown below in the chart of the E-mini Russel 2000 Futures contract:
In oversold areas, where the Price Oscillator is bottoming, a trader could look for buys. Of course other technical indicators should be used to initiate the trade.
Similarly, in overbought areas, where the Price Oscillator has topped, a trader could look for sells. Other technical indicators should be consulted before an official decision is made, but nevertheless, the Price Oscillator gives a bias as to whether buy or sell indications should be acted upon: overbought regions - look for sells; oversold regions - look for buys.
The Price Oscillator is effective in visually representing overbought and oversold conditions as well as showing moving average crossover buy and sell signals. The Price Oscillator is very similar to the MACD line of the very popular MACD indicator and should be investigated as well (see: MACD).
INTRADAY STOCK TIPS
3IINFOTECH
Aban Offshore Ltd.
ABAN
Abb Ltd.
ABB
Abg Shipyard Ltd
ABGSHIP
Aditya Birla Nuvo Limited
ABIRLANUVO
Acc Limited
ACC
Adlabs Films Ltd
ADLABSFILM
Aia Engineering Limited
AIAENG
Akruti City Limited
AKRUTI
Allahabad Bank
ALBK
Alok Industries Ltd
ALOKTEXT
Ambuja Cements Ltd
AMBUJACEM
Amtek Auto Ltd.
AMTEKAUTO
Andhra Bank
ANDHRABANK
Ansal Prop And Infra Ltd
ANSALINFRA
Alstom Projects India Ltd
APIL
Aptech Limited
APTECHT
Aptech Limited
ARVIND
Ashok Leyland Ltd
ASHOKLEY
Asian Paints Limited
ASIANPAINT
Aurobindo Pharma Ltd
AUROPHARMA
Axis Bank Limited
AXISBANK
Axis Bank Limited
BAJAJ-AUTO
Bajaj Hindustan Ltd
BAJAJHIND
Bajaj Holdings And Investment Limited
BAJAJHLDNG
Balaji Telefilms Limited.
BALAJITELE
Ballarpur Industries Limited
BALLARPUR
Balrampur Chini Mills Ltd
BALRAMCHIN
Bank Of Baroda
BANKBARODA
Bank Of India
BANKINDIA
Bata India Ltd
BATAINDIA
Bharat Electronics Ltd
BEL
Beml Limited
BEML
Bharat Forge Co Ltd
BHARATFORG
Bharti Airtel Limited
BHARTIARTL
Bharat Heavy Electricals Ltd
BHEL
Bhushan Steel Limited
BHUSANSTL
Oswal Chem. And Fert. Ltd.
BINDALAGRO
Biocon Limited.
BIOCON
Biocon Limited.
BIRLACORPN
Bombay Dyeing And Mfg. Co Ltd
BOMDYEING
Bongaigaon Refinery Ltd
BONGAIREFN
Bosch Limited
BOSCHLTD
Bharat Petroleum Corp Lt
BPCL
Bombay Rayon Fashions Ltd
BRFL
Brigade Enter. Ltd
BRIGADE
Cairn India Limited
CAIRN
Canara Bank
CANBK
Central Bank Of India
CENTRALBK
Century Textiles Ltd
CENTURYTEX
Cesc Ltd
CESC
Chambal Fertilizers & Chemicals Ltd
CHAMBLFERT
Chennai Petroleum Corp Lt
CHENNPETRO
Cipla Ltd
CIPLA
Cmc Ltd
CMC
Colgate Palmolive Ltd.
COLPAL
Container Corp Of Ind Ltd
CONCOR
Core Proj. And Tech. Ltd.
COREPROTEC
Corporation Bank
CORPBANK
Crompton Greaves Ltd
CROMPGREAV
Cummins India Ltd
CUMMINSIND
Dabur India Ltd
DABUR
Develop Credit Bank Ltd
DCB
Deccan Chronicle Hold Ltd
DCHL
Dena Bank
DENABANK
Dish Tv India Ltd.
DISHTV
Divis Laboratories Ltd
DIVISLAB
Dlf Limited
DLF
Dr. Reddys Laboratories
DRREDDY
Edelweiss Cap Ltd
EDELWEISS
Educomp Solutions Ltd
EDUCOMP
Everest Kanto Cylinderltd
EKC
Escorts India Ltd
ESCORTS
Essar Oil Ltd
ESSAROIL
Everonn Systems Ind. Ltd
EVERONN
Federal Bank Ltd
FEDERALBNK
Financial Techno (i) Ltd
FINANTECH
Firstsource Solu. Ltd.
FSL
Gail (india) Ltd
GAIL
Gateway Distriparks Ltd.
GDL
The Ge Shpg.ltd
GESHIP
Gitanjali Gems Limited
GITANJALI
Glaxosmithkline Pharma Lt
GLAXO
Gmr Infrastructure Ltd.
GMRINFRA
Gujarat Narmada Fert. Co
GNFC
Grasim Industries Ltd
GRASIM
Gujarat State Petro Ltd
GSPL
Gtl Ltd
GTL
Gtl Infrastructure Limited
GTLINFRA
Great Offshore Ltd
GTOFFSHORE
Gujarat Alkalies And Chem
GUJALKALI
Gvk Power & Infrastructure Limited
GVKPIL
Havells India Limited
HAVELLS
Hindustan Construction Co
HCC
Hcl Infosystems Ltd
HCL-INSYS
Hcl Technologies Ltd
HCLTECH
Hdfc Ltd
HDFC
Hdfc Bank Ltd
HDFCBANK
Housing Dev And Infra Ltd
HDIL
Hero Honda Motors Ltd
HEROHONDA
Hindalco Industries Ltd.
HINDALCO
Hindustan Oil Exploration
HINDOILEXP
Hindustan Petroleum Corp
HINDPETRO
Hindustan Unilever Ltd.
HINDUNILVR
Hindustan Zinc Limited
HINDZINC
Hotel Leela Ventures Ltd
HOTELEELA
Ibn18 Broadcast Limited
IBN18
Indiabulls Real Est. Ltd
IBREALEST
Icici Bank Ltd.
ICICIBANK
Icsa (india) Limited
ICSA
Indus Dev Bank Of Ind Ltd
IDBI
Idea Cellular Limited
IDEA
Infra. Dev. Fin. Co. Ltd
IDFC
Ifci Ltd
IFCI
Indian Hotels Co Ltd
INDHOTEL
India Cements Ltd
INDIACEM
India Infoline Limited
INDIAINFO
Indian Bank
INDIANB
Indusind Bank Limited
INDUSINDBK
Infosys Technologies Ltd
INFOSYSTCH
Indian Overseas Bank
IOB
Indian Oil Corp Ltd
IOC
Irb Infrastructure Developers Limited
IRB
Ispat Industries Limited
ISPATIND
Itc Ltd
ITC
Ivrcl Infrast And Proj Ltd.
IVRCLINFRA
Ivr Prime Urban Dev. Ltd.
IVRPRIME
J And K Bank Ltd.
J&KBANK
Jet Airways (india) Ltd.
JETAIRWAYS
Jindal Saw Limited
JINDALSAW
Jindal Steel And Power Ltd
JINDALSTEL
Jaiprakash Associates Ltd
JPASSOCIAT
Jaiprakash Hydropow Ltd.
JPHYDRO
Jaiprakash Hydropow Ltd.
JSL
Jsw Steel Limited
JSWSTEEL
Kesoram Industries Ltd
KESORAMIND
Kesoram Industries Ltd
KFA
Klg Systel Ltd.
KLGSYSTEL
Kotak Mahindra Bank Ltd
KOTAKBANK
Ksk Energy Ventures Limited
KSK
K S Oils Limited
KSOILS
Karnataka Bank Limited
KTKBANK
Lakshmi Machines Ltd
LAXMIMACH
Lic Housing Finance Ltd
LICHSGFIN
Lanco Infratech Ltd.
LITL
Larsen And Toubro Ltd.
LT
Lupin Limited
LUPIN
Mahindra And Mahindra Ltd
M&M
Mahindra Lifespace Devltd
MAHLIFE
Maharashtra Seamless Ltd
MAHSEAMLES
Maruti Suzuki India Ltd.
MARUTI
Matrix Laboratories Ltd.
MATRIXLABS
United Spirits Limited
MCDOWELL-N
Mic Electronics Limited
MIC
Mindtree Conslt Ltd
MINDTREE
Mercator Lines Limited
MLL
Monnet Ispat Ltd
MONNETISPA
Moser-baer (i) Ltd
MOSERBAER
Mphasis Limited
MPHASIS
Mrf Ltd
MRF
Mrpl
MRPL
Mahanagar Telephone Nigam
MTNL
Nagarjuna Constrn. Co. Lt
NAGARCONST
Nagarjuna Fertilizers Ltd
NAGARFERT
National Aluminium Co Ltd
NATIONALUM
Info Edge (i) Ltd
NAUKRI
Nava Bharat Ventures Limi
NBVENTURES
Ndtv Ltd
NDTV
Network 18 Fincap Ltd.
NETWORK18
Neyveli Lignite Corporati
NEYVELILIG
Niit Limited
NIITLTD
Niit Technologies Ltd
NIITTECH
Noida Toll Bridge Co Ltd
NOIDATOLL
Ntpc Ltd
NTPC
Nucleus Software Exports
NUCLEUS
Nucleus Software Exports
OFSS
Omaxe Limited
OMAXE
Oil And Natural Gas Corp.
ONGC
Opto Circuits (i) Ltd.
OPTOCIRCUI
Orbit Corp. Ltd.
ORBITCORP
Orchid Chemicals Ltd
ORCHIDCHEM
Oriental Bank Of Commerce
ORIENTBANK
Pantaloon Retail (i) Ltd
PANTALOONR
Parsvnath Developer Ltd
PARSVNATH
Patel Engineering Ltd.
PATELENG
Patni Computer Syst Ltd
PATNI
Peninsula Land Limited
PENINLAND
Petronet Lng Limited
PETRONET
Power Fin Corp Ltd.
PFC
Power Fin Corp Ltd.
PIRHEALTH
Punjab National Bank
PNB
Polaris Software Lab Ltd
POLARIS
Power Grid Corp. Ltd.
POWERGRID
Praj Industries Ltd
PRAJIND
Prism Cements Ltd
PRISMCEM
Ptc India Limited
PTC
Punj Lloyd Limited
PUNJLLOYD
Puravankara Proj. Ltd.
PURVA
Rajesh Exports Ltd
RAJESHEXPO
Ranbaxy Labs Ltd
RANBAXY
Reliance Communications Limited
RCOM
Rural Electrification Corporation Limited
RECLTD
Redington (india) Ltd.
REDINGTON
Reliance Capital Ltd
RELCAPITAL
Reliance Industries Ltd
RELIANCE
Reliance Infrastructure Limited
RELINFRA
Shree Renuka Sugars Ltd
RENUKA
Reliance Industrial Infra
RIIL
Rel. Nat. Resources Ltd.
RNRL
Rolta India Ltd
ROLTA
Reliance Petroleum Ltd.
RPL
Reliance Power
RPOWER
Steel Authority Of India
SAIL
Satyam Computer Services
SATYAMCOMP
State Bank Of India
SBIN
Shipping Corp Of India Lt
SCI
Sesa Goa Ltd
SESAGOA
Siemens Ltd
SIEMENS
Sintex Industries Ltd
SINTEX
S Kumars Nationwide Ltd
SKUMARSYNF
Sobha Developers Ltd
SOBHA
Srei Infrastructure Finan
SREINTFIN
Srf Ltd
SRF
Strides Arcolab Limited
STAR
Sterlite Inds (ind) Ltd
STER
Sterling Biotech Ltd
STERLINBIO
Sterlite Technologies Ltd
STRTECH
Sun Pharmaceuticals Ind.
SUNPHARMA
Sun Tv Network Limited
SUNTV
Suzlon Energy Limited
SUZLON
Syndicate Bank
SYNDIBANK
Tata Chemicals Ltd
TATACHEM
Tata Communications Limited
TATACOMM
Tata Motors Limited
TATAMOTORS
Tata Power Co Ltd
TATAPOWER
Tata Steel Limited
TATASTEEL
Tata Tea Ltd
TATATEA
Tata Consultancy Serv Lt
TCS
Tech Mahindra Limited
TECHM
Thermax Ltd
THERMAX
Titan Industries Ltd
TITAN
Torrent Power Ltd
TORNTPOWER
Triveni Engg. And Inds. Ltd
TRIVENI
Tata Teleserv(maharastra)
TTML
Tulip It Services Ltd
TULIP
Tv18 India Limited
TV-18
Tvs Motor Company Ltd
TVSMOTOR
Uco Bank
UCOBANK
Ultratech Cement Limited
ULTRACEMCO
Union Bank Of India
UNIONBANK
United Phosphorous Ltd
UNIPHOS
Unitech Ltd
UNITECH
Utv Soft. Comm. Ltd.
UTVSOF
Vijaya Bank
VIJAYABANK
Voltamp Transformers Ltd
VOLTAMP
Voltas Ltd
VOLTAS
Walchandnagar Industries
WALCHANNAG
Welspun Guj St. Ro. Ltd.
WELGUJ
Wipro Ltd
WIPRO
Wockhardt Limited
WOCKPHARMA
Wire & Wireless (i) Ltd.
WWIL
Yes Bank Limited
YESBANK
Zee Entertainment Ent Ltd
ZEEL