An oscillator is a type of technical indicator that typically "oscillates" between 0 and 100 and lets traders know when a pair is oversold or overbought.

For example the RSI, or Relative Strength Index, uses the change from one closing price to the next to tell you when a pair is oversold or overbought. Other common oscillators are the stochastic and parabolic SAR though there are many, many more. Oscillators are generally considered leading indicators and are better served in range-bound markets, not trending markets.

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