DEFINITION of 'Sine Wave'
An geometric waveform that oscillates (moves up, down or sidetoside) periodically, and is defined by the function y = sin x. In other words, it is an sshaped, smooth wave that oscillates above and below zero.
BREAKING DOWN 'Sine Wave'
The Composite Index of Lagging Indicators, one of three Business Cycle Indicators published by the Conference Board is known to resemble a sine wave since the measures that make up the index (i.e. ratios and interest rates) tend to oscillate between a range of values. For example, inflation is always kept between specified rates and if/once inflation meets or exceeds a specified limit, interest rates will be adjusted to either increase or decrease inflation so it is brought within a target range. Thus, as the rate of inflation increases, decreases or stays the same, interest rates will oscillate up and down to control an undesired rate of inflation.

Oscillator
A technical analysis tool that is banded between two extreme ... 
OsMA
An abbreviation for Oscillator  Moving Average. OsMA is used ... 
Wave
A pattern of behavior marked by noticeable increases and decreases. ... 
Covered Interest Arbitrage
The practice of using favorable interest rate differentials to ... 
Demarker Indicator
An indicator used in technical analysis that compares the most ... 
Chaikin Oscillator
An oscillator which measures the accumulation distribution line ...

Trading Strategies
Beginner's Guide To Stockcharts.com: Indicators
Indicators are calculations based on price and volume history of a ticker. There are many different indicators, each with a unique formula used to measure such things as volatility, momentum, ... 
Insurance
Exploring Oscillators and Indicators: Stochastic Oscillator
By Chad Langager and Casey Murphy, senior analyst of ChartAdvisor.com The stochastic oscillator is another wellknown momentum indicator used in technical analysis. The idea behind this indicator ... 
Technical Indicators
How To Profit From The "Night and Day" Aroon Oscillator
“Aroon” is a Sanskrit word loosely translated as the transition from night to day, appropriate for a measure that attempts to determine when a trend is about to develop into something of substance. ... 
Active Trading Fundamentals
Elliott Wave: Shifting Into Trading Gear
By Matt Blackman with Mike Green Contact Matt In the preceding section in this series, we look at how one company isolated parts of Elliott Wave patterns and helped the trader identify them ... 
Chart Advisor
Trading Wave "C" In Stocks
Stock corrections typically unfold in three major waves: A, B and C. It is highly likely B, is underway, and any slide in prices over the coming weeks is likely to trigger wave C in many stocks. 
Trading Strategies
Technical Analysis: Indicators And Oscillators
By Cory Janssen, Chad Langager and Casey MurphyIndicators are calculations based on the price and the volume of a security that measure such things as money flow, trends, volatility and momentum. ... 
Technical Indicators
Use The McClellan Oscillator To Measure Market "Breadth"
How broad is the market? And, once we answer that question, how can we use that answer to our advantage? 
Forex Education
Elliott Wave Theory
Acquaint yourself with the principle built on the discovery that stock markets did not behave in a chaotic manner. 
Technical Indicators
How To Apply Relative Strength Index With MetaTrader 4: Relative Strength Index  RSI
The Relative Strength Index (RSI), shown in Figure 1, is a momentum oscillator that compares the magnitude of recent raises in price to recent drops in order to help traders identify overbought ... 
Active Trading Fundamentals
Confirming Price Movements With Volume Oscillators
Use this indicator to validate a change in price direction and moving averages.

How do you know where on the oscillator you should make a purchase or sale?
Learn more about oscillator indicators, technical momentum measures that are used by traders to predict potential market ... Read Answer >> 
What are the most common momentum oscillators used in day trading?
Take a look at some commonly used momentum oscillators that can also be used for intraday trading, such as stochastic oscillators ... Read Answer >> 
What is a common strategy traders implement when using the Ultimate Oscillator?
Learn what the ultimate oscillator is and find out about a common strategy traders use with the oscillator to signal entries ... Read Answer >> 
Why is the Ultimate Oscillator important for traders and analysts?
Understand the thinking behind the design of the ultimate oscillator and learn the primary trading signals that it generates ... Read Answer >> 
What are the main differences between the Williams %R & Ultimate Oscillator?
Read about the technical changes Larry Williams made to his trading tools, from the Williams %R oscillator to the Ultimate ... Read Answer >> 
What is a common strategy traders implement when using the McClellan Oscillator?
Read about the common trading signals that are generated by the McClellan oscillator, a market breadth indicator often applied ... Read Answer >>