Most oscillators used as indicators are designed for flatter markets or the non-trending types.
But there is one good oscillator working on market generated information which uses also market internals and is an excellent tools to guage an overbought/ oversold condition in a trending market.
This one is called the McClellan oscillator and we visit it periodically to measure extremes of bullishness/ bearishness.
You can read about the McClellan here:
The McClellan has a reading of 64 currently near the overbought level of 80 but not yet signalling extreme bullishness in the markets. This was at the close yesterday.
Our markets have been up since morning, signalling that we may have a bit more steam left.
And as usual, market generated information works better than parameter based ones.
