A retail trader data oscillator forex is a popular technical indicator that calculates future prices by taking the price of a financial instrument over a specific period of time. The ratio of retail trades to total trades is calculated as a percentage and varies from zero to one. The retail trade sentiment score is based on the retail net flows over the past 10 trading days. A higher sentiment score indicates that there is more retail net buying than selling.

Oscillators are a useful tool because they help you recognize pivotal points in the market. These oscillators create a band between two extreme values and indicate overbought or oversold conditions. When the oscillator is in an overbought area, a reversal is likely, while when it reaches an oversold zone, a trend is likely to reserve up.