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Technical Analysis

Momentum Oscillators

Measure the force behind every move. RSI, MACD, Stochastic, Bollinger Bands, ATR and more — what each oscillator reads, how to spot overbought, oversold and divergence, and how to combine them without the redundancy.

Stage 24 of the TradeWize technical analysis track: RSI, MACD, Stochastic, Bollinger Bands and ATR — what each one reads, and how to combine them.

0 / 12 done
StartLesson 1 · What Oscillators Measure & Why They Exist
What you’ll leave with12 lessons · 12-line playbook
  • An oscillator shows the force behind a move. Read the chart first, then the line's side of 50 and its slope.
  • Read the chart, then set RSI's lines: 80/20 on a trend, 60/40 in a quiet range. In a climb, buy dips to 40-50.
  • Divergence is price and RSI disagreeing. Regular warns of a turn, hidden says the trend carries on. Act once price confirms.
  • A MACD cross of its signal shows momentum turning. Trade it with the zero line's bias, and skip crosses in a range.
  • MACD divergence warns and the cross triggers. Take crosses with the zero line's bias. A reversal long waits for MACD back over zero.
  • The Stochastic places the close in its 14-day range. In a range, trade crosses in a zone. In a trend, only trade with it.
  • The bands measure volatility. After a squeeze, trade the first close outside a band. In a range, a band touch snaps back to the middle.
  • ATR is the size of a normal day, in dollars. Put your stop 1.5 to 2 ATRs away. Size each new trade off today's ATR.
  • CCI over +100 means a strong move is starting, so trade with it. When it drops back under +100, a long takes profit.
  • %R runs upside down: 0 is the top, -100 the bottom. In a trend you trust, trade the hook out of a zone.
  • Indicators come in families: trend, momentum, volatility, volume. Two from one family are one opinion. Pick one tool per job.
  • Read price and the regime first, then pick the tool for the job. An indicator proves nothing until price confirms.

All lessons

  1. 01What Oscillators Measure & Why They Exist
  2. 02RSI Deep Dive — Overbought, the Centerline & Failure Swings
  3. 03RSI Divergence — Bullish & Bearish
  4. 04MACD — Signal Line, Histogram & the Zero Line
  5. 05MACD Divergence & Crossover Strategies
  6. 06Stochastic Oscillator
  7. 07Bollinger Bands
  8. 08ATR — Measuring Volatility
  9. 09CCI (Commodity Channel Index)
  10. 10Williams %R
  11. 11Combining Oscillators — What Works, What's Redundant
  12. 12Indicator Challenge