The Oracle Strength Indicator represents a technical analysis tool used in forex trading to measure the strength of a currency.
It is a custom indicator that is typically used in conjunction with other indicators and chart patterns to provide a more complete picture of the market. Traders can use this information to make informed decisions about when to buy or sell a currency.
Oracle Strength Indicator Overview
The indicator compares the current price of a currency to its historical prices and calculates a relative strength value. A high value indicates that the currency is relatively strong, while a low value indicates that it is relatively weak.
The Oracle is a basic trend-following indicator that displays numerous bars under the chart. The bars come in a variety of colors, and each color represents a distinct meaning. They stand for consumer psychology.
The yellow bars indicate an ongoing conflict between buyers and sellers. It implies that buyers are attempting to raise the price while sellers are attempting to lower it.
The blue bars show a bullish momentum, whereas the red bars depict a bearish momentum. When the blue and red bars are plotted by the Oracle Strength Indicator, you can enter the trade.
- A blue bar must be plotted using the Oracle Strength Indicator.
- You could start trading at the first bar and then hold off until the following blue bar forms.
- You could put a stop-loss order near the most recent low.
- If you want to leave the trade, you can set your take-profit at the most recent high or whenever a different color bar occurs.
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- A red bar must be plotted by the Oracle Strength Indicator.
- You could start the transaction at the first red bar and then wait for the second one to form before closing it.
- Put a stop loss order close to the most recent high
- You may set your take-profit at the most recent low, or you might abandon the trade if another color bar appears.