The Daedalus Report’s Oscillator is used in technical analysis
that ranges between zero and one and is created by applying the Stochastic
Oscillator formula to a set of Relative Strength Index
) values rather than standard price data. Using RSI
values within the Stochastic
formula gives traders an idea of whether the current RSI
value is overbought or oversold – a measure that becomes specifically useful when the RSI
value is confined between its signal levels of 20 and 80.
The ideal parameters I use are: 3/3/5/8, 5/5/8/13, 8/8/13/21, 13/13/21/34, 21/21/34/55, and 34/34/55/89. (And YES they are all Fibonacci numbers!)
Choose the group that makes the TDROsc indicator closely match the wave of the price history for the period (15min, 1hr, 4hr, daily, weekly, monthly, etc) you are viewing. Then you can use it to forecast properly.