Elliot Oscillator is one of forex technical indicator used in forex technical analysis. Elliot Oscillator is used by many traders and it’s quite useful and easy to use.

The Elliott Oscillator, or 5/34 Oscillator, is a 34 period simple moving average of prices subtracted from a 5 period simple moving average of prices displayed as a histogram above and below a zero line.

In an effort to keep better track of the complicated and very subjective Elliot Wave counts the Elliot Oscillator measures the Rate of change of one wave compared to the Rate of Change of another wave.

The Elliot Oscillator is simply the difference of a 5-periods simple moving average and a 34-periods simple moving average displayed as a histogram that oscillates above/below a zero line.

The most important single idea about the Elliott Oscillator is that the highest/lowest point of the Oscillator is connected to the bullish/bearish Wave 3 of a bigger trend. This is because the momentum in Wave 3 is always the most impulsive.