How to Use Elliott Wave Oscillator in Forex Trading?

In this article we will introduce you to one of the best financial market oscillators for technical analysis, called the Elliott Wave Oscillator. This oscillator will help you a lot in identifying the valleys and peaks as well as the Elliott waves in the chart, and by using it, you can analyze the chart more easily and better. This oscillator consists of green and red bars, the red bars that face down show the strength of the descending waves and the green bars that face up in this oscillator show you the strength of the ascending waves.

Photo by TradingView website

Can we find the main trend in the chart using this oscillator or indicator?

To find the main trend using this oscillator, we need to check the number of red and green bars. For example: If the number of green bars in this oscillator is much more than the number of red bars, it means that our trend in this time period is bullish.

But if the number of red bars is much more than the number of green bars, it means that our trend is bearish. A very important point is that you can use this oscillator to find market trends, but you must also analyze the chart in terms of price action, as no indicator is 100% accurate.

What does it mean when the number of green and red bars is equal?

When the number of red and green bars on this oscillator is equal, it means that the strength of the bullish and bearish waves is equal and the market is in the trading range or the trend is sideways.

Photo by TradingView website

In the image above, with the help of this oscillator, we have been able to find the main and corrective waves in the chart, in accordance with the theory of Elliott waves.

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