Dear all,
I believe there is a lot to understand about oscillators. Like, divergence for example. One thing I have analyzed so far is that the H4 frame’s oversold/overbought levels can be used to support multi-frame trading by indicating the general direction for the day, since a swing will probably be made up of 5 or 6 H4 candlesticks. That might be more accurate than simply gauging the day’s direction by predicting the next candle on the D1 frame. Then, this can be combined with an analysis of 15m frame’s oversold/overbought levels which will tell the direction for the next 1 or 2 hours. This would probably be the rationale why many people take it as a strategy to only enter a trade when all the short term frames coincide in terms of overbought/oversold levels.
So what I hope to find is a website or book which can look in depth into oscillators in such a way. I have read briefly Etzkorn Mark’s Trading with Oscillators. But its a tad long and highly technical. Certainly I also cannot find in it confirmation of the usage I have just described. Thus, can anyone of you recommend a website or book that discusses oscillators in this depth, and prefably in a straightforward “tips/tricks like” fashion? I believe many fx-men in baby pips will be just as as grateful as I am.
Thanks!