CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 72% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

The Elliot oscillator

This oscillator, which was made popular by Linda Bradford Raschke, identifies the momentum behind market moves and highlights new momentum highs and lows.

The Elliot Oscillator is a 10-period simple moving average subtracted from a 3-period simple moving average and plotted as a histogram above and below the zero line. The result is in addition smoothed by a 16-period simple moving average. This indicator is very similar to the MACD indicator. It can be applied in any time frame (intraday, daily ...).

A special feature of the Elliot Oscillator is that it looks for a consensus of new high / lows in the oscillator and in the price. When there is a new high / low in both the oscillator (20-periods) and the price (40-periods) the background of the chart is highlighted in blue.

The Elliot oscillator indicator was designed by trader Linda Raschke.