Oscillator
An indicator that moves within a bounded range, used to describe the pace of price change rather than its direction.
How it is identified
Test: the indicator's output is confined between fixed limits, such as 0 to 100 or -100 to +100
Unit
qualitative
In depth
Because an oscillator is bounded, it can reach an extreme and stay there — which is why the common instruction to sell when it is high fails badly in a sustained move. Oscillators are built for range-bound conditions and are actively misleading in trends, while trend indicators fail in ranges; no single indicator handles both. All of them are transformations of price and therefore contain no information price does not already hold. Everything in this category is described as a calculation and a convention; nothing here predicts a price direction.
Worked example
An oscillator bounded at 0 to 100 reads above 70 for nine consecutive weeks during a sustained advance. Selling on the first reading above 70 would have exited eight weeks early — the bound is a property of the formula, not of the market.
Illustrative figures, chosen so the arithmetic is easy to follow. Not a live price and not a valuation of any company.
Educational reference only
This entry explains what “Oscillator” means. It is not investment advice and not a recommendation to buy or sell any security. Any numbers above are illustrative, not live prices, and nothing here predicts price direction or rates a stock. Consider your own circumstances and consult a SEBI-registered investment adviser before acting.