by The Elliott Wave Oscillator is a technical analysis indicator that can provide powerful insights into price trends and market sentiment when applied to charts. On the popular BetPro Exchange for sports betting and trading, advanced uses of the oscillator can give traders an edge.
What is the Elliott Wave Oscillator?
The oscillator was developed by technical analyst Ralph Nelson Elliott to detect shifts between optimism and pessimism in the market. It compares recent price action to older price action to gauge swelling bullish or bearish momentum.
The calculation is:
(5-period simple moving average – 35-period simple moving average) x 100
Fluctuations above 0 indicate rising optimism and strengthening upward momentum. Readings below 0 signal pessimism and downward pressure.
Why Use the Oscillator for Sports Betting?
Betting markets, like financial markets, are driven by greed and fear. The oscillator measures these emotions even when price action looks chaotic or unclear.
Seeing divergences between price and oscillator also warns of impending reversals critical for betting timing.
Advanced Application #1: Identifying Swings in Momentum
The most basic use is identifying general swings above or below 0. But for short term trades, minor swings provide precision entry and exit timing.
When the oscillator crosses back above 0, it flags upward momentum accelerating. New long positions have an edge.
Conversely, crossing back below 0 signals bearish momentum gaining steam. Consider exiting longs or even shorting upcoming events.
This analysis works on any timeframe. Use shorter periods to pinpoint intraday swings.
Advanced Application #2: Confirming Breakouts
The oscillator also boosts confidence in potential breakouts. We want to bet larger when true upside or downside thrusts occur.
If price breaks past well-defined support or resistance, wait for oscillator confirmation before making big bets.
If oscillator also breaks out to a new extreme high or low, momentum aligns with price for a powerful move.
Advanced Application #3: Noting Divergences
Given sports betting’s short term nature, another advanced use is identifying imminent reversals.
Markets sway like a pendulum between greed and fear. Oscillator divergences expose these turning points.
Bullish divergences form when price prints lower lows but oscillator prints higher lows. Despite market pessimism, betting value still exists contrarily. Consider fresh long entries.
Bearish divergences take the opposite shape – lower highs in oscillator versus higher highs in price. Take profits or short overextended markets.
Real World Example on BetPro Exchange
Let’s see how oscillator analysis practically boosts profits during a major tennis tournament:
1) Swing Low Confirms Upside Momentum
After a losing streak for favored player Alcaraz, the oscillator swung positively with price. His next match odds now offered betting value.
2) Breakout for Confirmation
When Alcaraz took the first set decisively, his odds jumped. The simultaneous oscillator breakout signaled high confidence of winning. This justified increasing our wager.
3) Final Bearish Divergence Predicts Reversal
Leading into the finals, Alcaraz saw his odds reach an extreme premium. But the oscillator formed lower highs warning of unsustainable greed. We exited our positions preemptively.
Sure enough, Alcaraz suffered an epic upset the next round despite the odds.
Incorporating Other Indicators
For even higher conviction oscillator signals, add confluence with bands or other oscillators:
- Bet with the trend using moving averages
- Combine with Bollinger Bands for timing mean reversions
- Use RSI for gauging overbought/oversold turning points
Conclusion: Oscillator Helps Ride Market Emotions
The advanced applications covered – identifying swings, confirming breakouts, noting divergences – give BetPro Exchange traders an opportunistic timing tool based on market emotions.
Used with risk management discipline, the Elliott Wave Oscillator offers largely untapped potential.
Now let’s cover some frequently asked questions when applying the oscillator.
FAQs
What timeframes work best?
The oscillator is flexible for both short and long term trading on any liquid market. Use shorter periods like 5-30 minutes for timing intraday swings. For overall trends, use daily or weekly charts.
Does it work for other sports besides tennis?
Yes, the principles apply universally across betting markets. The oscillator exposes similar greed/fear cycles in football, basketball, hockey, etc. Simply apply the same entry, exit and risk rules.
Can the oscillator offer trade signals on its own?
For highest edge, combine oscillator with price action context. The most reliable signals occur when momentum aligns with chart patterns and key levels. But for very short term scalping, oscillator crossovers have merit.
What charting platform or software is required?
Any trading platform with basic technical indicator functionality allows adding the oscillator. Popular choices like BetAngel Pro, Geeks Toy, and FairBot all support the Elliott Wave Oscillator. Ensure markets have sufficient historical tick data.
Are there any pitfalls or downsides?
Like all indicators, false signals occur during especially volatile periods. Use appropriate stop losses. Also, adjustment may be needed during announcements or news events that suddenly shift market sentiment.
This concludes our guide on applying the Elliott Wave Oscillator for advanced trading on BetPro Exchange! Let me know if you have any other questions.
