Oscillators are made from combinations of
Volume or Open interest
They are then related to current price action which will return an Oscillation between a high and a low point.The oscillation is normally scaled so we can value the oscillator at any one point of time.
There are some common errors on the use of oscillators among traders.
Common Error (1)
Overlaying a Chart with 2 or more oscillators wanting each to confirm the other.This is similar to taking a train to a destination you can chose
(1)The Morning Train (open)
(2)The Midday Train (the Open less ,close or the RANGE)
(3)The Night Train (the close)
(4)Or the Train with the most people on board (Volume).
As you can see it doesnt matter which train you take all are going to the one destination!
Here is a chart Of ORI Ive highlighted the Oscillators and their signals when used correctly on this chart both are set to 14 days.
Common error (2) next.