## Oscillator

An **Oscillator** indicator graphically displays the interaction between two moving averages, one slow moving, the other slightly faster.

Generally the shorter the time period, the more responsive the moving average will be, and it will be said to be faster.

When the time period used to generate the moving average is longer, the effect of price changes is smoothed out, and the line appears more stable. It will be said to be moving more slowly than a moving average with a shorter time period.

When two moving averages are graphed together by the **Oscillator** tool, the interaction of these differences in price analysis can be graphically displayed, usually as a histogram fluctuating on either side of zero, see graphic below.

In addition to comparing the movement of two moving averages in one oscillator graph, the **Oscillator** tool allows users to view and compare two oscillators (referred to as Plots 1 and 2) at the same time.

By default, only **Plot 1** is visible. **Plot 2** can be displayed by selecting the **Visible** check box in the **Plots** tab of the **Oscillator Properties** dialog box, see below.

#### Oscillator Moving Average Parameters

The parameters for the moving averages for both plots are set in the **Parameters** tab of the **Oscillator Properties** dialog box:

The default values are shown, and by default only **Plot 1's** histogram will be displayed.

**Plot 1** in this case will display the interaction of a 5 period Simple Moving Average with a 35 period **Simple Moving Average** based on the **Close** data field.

Use **Plot 2** to compare the oscillator effect of other moving averages with Plot 1's oscillator display.

Users can also chose a different data field to create the moving averages with.

#### Display Oscillator Plots

By default, a single oscillator (**Oscillator 1**) is displayed in a histogram format:

The intersection of the two moving average lines takes place at 0 level, the histogram forming above and below that level whenever one moving average line crosses the other moving average line.

**Histogram** is the default display **Style**, however, the oscillator can also be displayed as points, steps, or a solid, dotted or dashed line.

The display of both **Oscillators** is controlled by the same tabbed page. To change the appearance of either oscillator, select it from the drop-down menu:

To display the second oscillator, select **Oscillator2** from the drop-down menu, and check the **Visible** check box. The two oscillators will now be displayed:

Both oscillators will share the same zero level.

**Note** - In order to avoid one oscillator obscuring the other, it is suggested that the line style be selected for one oscillator' and histogram for the other.

## Related

- Indicator Type Settings
- Indicators
- Using Indicators
- Indicator Properties
- Signals on Indicators
- Comparative Indicators
- Relative Strength Comparison
- Fundamental Indicators
- Annual Fundamental Types
- Daily Fundamental Types
- Momentum Indicators
- DMI
- Momentum
- Parabolic SAR
- Rate of Change
- Thermometer
- Volume Momentum
- Moving Average Indicators
- Bollinger Bands
- Ichimoku
- MACD
- Mov Avg Bands
- Mov Avg Displaced
- Mov Avg Exponential
- Mov Avg Simple
- Mov Avg Weighted
- Oscillators
- Commodity Channel Index
- Relative Strength Index
- Standard Deviation Channel
- Stochastic
- Volume Oscillator
- Williams %R
- Trailing Stop Indicators
- Trailing Stop ATR
- Trailing Stop FXTE
- Trailing Stop Percentage
- Trailing Stop Price
- Trend Indicators
- Highest High
- Lowest Low
- Pivot Points
- Swing Indicator
- Swing Overlay
- Volatility Indicators
- ATR Welles Wilder
- Average Range
- Average True Range
- Statistical Volatility
- Volatility
- Volex
- Volume Indicators
- Accumulation/Distribution Line
- Chaikin's Money Flow
- On Balance Volume
- Open Interest
- Volume
- Indicators Criteria

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