Oscillator

An oscillator is a technical analysis indicator that creates high and low bands between two extreme values and then displays lines that oscillates between these two areas. Oscillators are trend indicators that are used by traders to identify short-term overbought or oversold positions. Technical analysts interpret information as overbought or oversold depending on the oscillator's value's proximity to either extreme values. When the oscillator's value is close to being oversold, it points to a potential buying opportunity. When the oscillator's value is close to being overbought, it points to a potential selling opportunity.