Indicators vs. Oscillators

Feature	Indicators	Oscillators
Definition	Mathematical tools to analyze trends, momentum, volatility, and volume.	Tools that oscillate within a range to detect overbought/oversold conditions.
Purpose	Confirm trends, measure momentum, and gauge volatility.	Identify overbought and oversold conditions, predict reversals.
Best for	Trend-following strategies in trending markets.	Range-bound markets with sideways price movement.
Market Condition	Strong trending markets.	Consolidating (sideways) markets.
Range of Movement	Open-ended (e.g., Moving Averages can rise indefinitely).	Confined within a range (e.g., RSI moves between 0-100).
Timing	Usually lagging, confirming trends after they occur.	Usually leading, predicting potential turning points.
Use Case	Identifying trend direction and continuation.	Timing entries/exits based on overbought/oversold conditions.
Works Best With	Moving Averages, Bollinger Bands, MACD (for trend-following).	RSI, Stochastic, MACD (for spotting reversals).
Key Weakness	Late signals; poor performance in range-bound markets.	Too many false signals in strong trends.