Oscilators – Williams Percentage Range, Ichimoku Kinko Hyo & Relative Strength Index

There are a lot of oscillators out there, virtually hundreds of them, and more are being created\developed\invented on a constant basis. Metatrader platform is offering a wide variety of them, and the most popular are being presented here. I do believe that each trader should find what works best for his/her trading style and while it is impossible to look at all the indicators/oscillators out there, trying to pick the ones that fit your needs is best. In our case here, we’re gonna take a look at Williams Percentage Range, Ichimoku Kinko Hyo and Relative Strength Index (RSI):

Williams Percentage Range: this oscillator travels only in negative territory, having values between 0 and -100, and it’s standard interpretation is that as long as it stays above or close to -20 level, price is in a bullish stance. The opposite is true as well, as long as it stays below or close to -80, price is in a bearish stance. More examples given on the recording.

Ichimoku Kinko Hyo: this oscillator has it’s origin in the Japanese technical analysis branch, and now it is being widely used all over the world. It means in a rough translation, equilibrium at a glance, because, starting from current price, the oscillator is taking into consideration the last 26 periods in the history to project important resistance and support for the next 26 periods. Great oscillator, extremely visual because of the famous cloud component (Kumo), can be applied on a variety of trading strategies, a couple of examples being presented on the recording. Book recommendation: Manesh Patel, “The Essential Guide to Ichimoku Kinko Hyo Technical Analysis”, 2010.

Relative Strength Index (RSI): one of the most famous oscillators out there, personally being a big fan of it.

Lots of books and analysis have been written and will still be written based on it. Standard interpretation is that above the 70 level price is considered to be overbought, so short signals to be identified, and below the 30 level price is considered to be oversold, so long signals to be identified. Also divergencies between price and RSI are looked for, a couple of examples being presented on the video.