Question
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How to read the oscillators?
1 Answer
<p>To read trading oscillators, look for overbought and oversold signals by observing when the indicator line crosses upper and lower bounds (e.g., above \(70\) or below \(30\) for the RSI). You can also interpret momentum by watching for crosses of a centerline or the oscillator line itself crossing its own moving average line. Finally, identify divergences, where the price makes a new high/low but the oscillator does not, which can signal a potential trend reversal. </p>
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