Oscillators help determine the state of overbought or oversold market, where the market is highly overheated and may reverse.
{% hint style="danger" %}
Using a single oscillator is dangerous - there will be many false signals, and monitoring them all is impossible!
{% endhint %}
A simple-to-understand scale at the very bottom of the indicator conveniently shows the level of overheating across 6 most popular indicators at once - RSI, StochasticRSI, Stochastic, MFI, CCI, Momentum:
* **Green color** - indicates the asset is overbought and the strength of **the bulls**
* **Red color** - indicates the asset is oversold and the strength of **the bears**
* **Color brightness** - indicates the degree of **overheating** (the brighter the color, the more overheated the price)
## Application in trading
Oscillators in their usual form are difficult and time-consuming to analyze, while the overheating scale is very simple:
* **"Long the green"** - open a trade when overbought starts to appear on the panel; close it when the green scale begins to disappear
* **"Short the red"** - open a trade when oversold starts to appear on the panel; close it when the red scale begins to disappear
{% hint style="success" %}
First of all try the simplest [trading strategy based on oscillator overheating](/faq-en/simple-strategies.md#strategiya-peregretost-oscillyatorov) from the indicator developer
{% endhint %}
{% tabs %}
{% tab title="Start of the rise" %}
In the example we see:
-when oscillators go into overheating individually - these are almost always false signals, which is why we use a set of 6
-when oscillators go into **overbought** together - this is a fairly accurate signal to **buy**
Also, when oscillators massively exit from **overbought** - this is a signal to **sell.**
{% endtab %}
{% tab title="Start of the fall" %}
In the example we see:
-when oscillators go into overheating individually - these are almost always false signals, which is why we use a set of 6
-when oscillators go into **oversold** together - this is a fairly accurate signal to **sell**
Also, when oscillators massively exit from **oversoldness** - this is a signal to **buying.**
{% endtab %}
{% endtabs %}
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