Most traders use various kinds of oscillators when trading Forex. Obviously, there have been many discussions on whether oscillators actually help traders to make money on a regular basis. There are many pros and cons. They say oscillators can be used to explain past price moves but usually fail in live (real-time) trading. Let’s try to go deeper into the issue to find out whether oscillators can be of any help to Forex traders…
According to Igor Zotov, an expert from (Europe’s Best Forex Training Project since 2009) and the author of the АО_Zotik indicator, oscillators (especially those that are built in MetaTrader 4 or 5) need major improvements.
Drawbacks of MT4 and MT5 Oscillators
Market Leader:Is it accidental that beginning traders complain about the efficiency of the oscillators built in MT4 and MT5?
Igor Zotov: When 80-90% of Forex traders lose and most of them use oscillators on a regular basis, than those oscillators obviously have some major drawbacks, which need to be eliminated. At the same time, it is difficult to briefly explain all the drawbacks of conventional oscillators.
Moving Averages. Most traders think that moving averages are momentum indicators. This is not always a correct statement. Everything depends on the period that is measured by a certain moving average. When the period is relatively small, MAs can be used as momentum indicators. When the period is increased, MAs turn into indicators that measure periods of consolidation (flattish moves). Therefore, there is some kind of uncertainty when it comes to identifying the type of a certain oscillator.
MAs are lagging indicators. The problem is usually fixed by applying some other settings to moving averages, thereby trying to turn them into leading indicators.
False signals.
: Improving Conventional Oscillators
Market Leader: Igor, what changes did you make to conventional oscillators that improved their efficiency?
Igor Zotov: In particular, experts (including myself) came up with an exclusive oscillator - AO_Zotik. This indicator combined the best features of MACD and Awesome Oscillator with the revolutionary trading system developed by Masterforex-V. As a result, the new indicator is more informative and efficient than other oscillators. By using this indicator, you can have a look at the market from a different angle.
The new indicator is also based on the factors needed to estimate the current market situation correctly. The approach to using oscillators has been changes as well.
If you are interested in the new АО_zotik indicator, please visit ’s website.
