MILAN OSCILLATOR INDICATOR
The most important signals are related to the divergence.
A recap for divergence from previous lessons:
DIVERGENCE AND HIDDEN DIVERGENCE
Positive Divergence is bullish and occurs in a downtrend when the price action prints lower lows that are not confirmed by the oscillating indicator.
Negative Divergence is bearish and occurs in an uptrend when the price action makes higher highs that are not confirmed by the oscillating indicator.
Bullish Hidden Divergence occurs during a correction in an uptrend when the oscillator makes a higher high while the price action does not as it is in a correction or consolidation phase.
Bearish Hidden Divergence occurs during a reaction in a downtrend when the oscillator makes a lower low while the price action does not as it is in a reaction or consolidation phase.
Other Signals can be crossing 0 lines or confirmation of change of bars colour.
A recap for divergence from previous lessons:
DIVERGENCE AND HIDDEN DIVERGENCE
Positive Divergence is bullish and occurs in a downtrend when the price action prints lower lows that are not confirmed by the oscillating indicator.
Negative Divergence is bearish and occurs in an uptrend when the price action makes higher highs that are not confirmed by the oscillating indicator.
Bullish Hidden Divergence occurs during a correction in an uptrend when the oscillator makes a higher high while the price action does not as it is in a correction or consolidation phase.
Bearish Hidden Divergence occurs during a reaction in a downtrend when the oscillator makes a lower low while the price action does not as it is in a reaction or consolidation phase.
Other Signals can be crossing 0 lines or confirmation of change of bars colour.
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