Price Oscillator Strategy

The Price Oscillator uses two moving averages.

 ✔ One shorter-period, and one longer-period. 

✔ When 2 MAs cross each other the PO reads 0. 

The Price Oscillator technical indicator can show overbought and oversold areas. 

Strategy: Only go long in an uptrend. Only go short in a downtrend 

Uptrend strategy: Look for an oversold situation to open a buy position. Close when get to overbought then close some more when crossing back to the zero line.

 Downtrend strategy: Look for an overbought situation to open a sell position. Close when get to oversold then close some more when crossing back to the zero line.

Pretty Good Oscillator Indicator

In a Downtrend: Only sell 1. At the end of the overbought area 2. Add when crossing below 0 line 3. Add at the start of Oversold In an Uptrend: Only buy 1. At the end of the oversold area 2. Add when crossing above 0 line 3. Add at the start of overbought Indicator Settings Period 28 Overbought 2 Oversold -2 Your Capital is at Risk. This is only an educational video.

Pivot Point Strategy

A pivot point is a technical indicator to identify trends and reversals in any market. Pivot points are calculated to determine critical levels in which the price could find its support and continues in the same direction or change from bullish to bearish, and vice-versa. We can use Pivot points to find entry, stops, and profit-taking by trying to determine the psychology of the market. When we are above the pivot point the market is bullish. In a bullish market if we cross a resistance level the uptrend will continue but if it bounces back we can expect a trend reversal. When we are below the pivot point the market is bearish. In a bearish market if we cross a support level the downtrend will continue but if it bounces back we can expect a trend reversal.

What is Parabolic SAR?

This is a very interesting and useful indicator. 

You can use it for the following purposes: 

Trend 

------We are in an uptrend when dots are below the candles.

------Downtrend is when dots are above the price. 

Entry Signals

 ------ Buy signals ( Only in an uptrend market ). The first dot below the candle

 ------ Sell Signals ( Only in a downtrend market ). The first dot above the candle. 

Stop loss 

 ------ Long positions: Put the stop loss below the dot. ( You can move the SL every time to use as a trailing SL.) 

------ Short positions: Put the stop loss above the dot. ( You can move the SL every time to use as a trailing SL.) 

 As I said before to avoid false entries as much as possible only trade in the direction of the long time trend. Use a trend indicator or big MA to determine the trend direction.

 Settings for AF numbers ( Acceleration Factor ) can be changed but I prefer the default settings.

 

Moving Average Envelopes

Moving average envelopes are created by plotting 2 lines at a percentage or points away from either side of the MA. 

MAEs are good to figure out the best resistance and support levels. 

We can add/close/open new positions when touching the support/resistance levels as well as when price crosses the middle line.