Derivative Oscillator

Derivative Oscillator Indicator

Derivative Oscillator is an indicator of forex trading which is a very simple forex trading indicator. Derivative oscillators must be used in combination with other indicators as well. This is just an oscillator indicator, it will tell you about market momentum. Although this indicator can be used in all market conditions, you are advised to trade in a market that is trending so that you will have a chance of winning in your desire. You must be very careful when trading with Derivative Oscillator because this system can give you false signals many times. So you have to consider many other factors than just jumping in trading solely based on this indicator.

Derivative Oscillator is a technical indicator that applies a histogram of convergence-divergence of moving average (MACD) to a smoothed relative strength index (RSI) to create a more advanced version of the RSI indicator.

Derivative oscillators are used in the same way as the MACD histogram. Positive values are considered bullish while negative values are considered bearish, and crossovers above and below the zero line signal indicate potential buying and selling opportunities.

Buy entry:

Buy Condition

• The market must go up in trend.
• Derivative oscillators must rise to the positive region of the negative region.
• Place your buy positions as soon as the above conditions are met.
• Set stop loss below the recent swing low.
• Take your advantage when the Derivative Oscillator enters the negative territory of the positive territory.

Sell entry:

Sell Condition

• The market must go down trend.
• Derivative oscillators must fall into negative territory from positive territory.
• Place your short position as soon as the above conditions are met.
• Set stop loss above the recent swing high.
• Take your advantage when the Derivative Oscillator rises to positive territory from negative.

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