Many traders rely on the oscillator as a trusted metric of the volume of a currency pair. This indicator will help you understand the movement and momentum of a currency. It gives you a very good feel for the present currency exchange rate in relation to historical prices for the currency. This can be very helpful in determining possible trends. The oscillator also gives you a good feel for if the stock is overbought or oversold and this can help support your trade. Typically if the oscillator value is over 80, the stock is overbought and if it dips below 20 it is oversold.