The chart shows the E-mini Russell 2000 that I trade everyday. In this chart, the 2 red arrows denote the 2 down oscillations of price. The price bars have been colour coded with the Ergodic Indicator to indicate the start and end of each oscillation. Similarly, the 3 green arrows denote the 3 Upward Oscillations of price. Each Up move starts with the onset of blue bars, and red bars will be the retracement period. The key here is to know WHEN the oscillation is beginning and with the help of a longer trend chart, one may take trades based on these smaller oscillations.
Another thing to note here is knowing when the direction of price is highly likely to reverse. In this example, the price break at 600.7 disrupted the down move and the up move is confirmed ONLY by the first green arrow.
Many traders trade based on what is show only by their indicators. The problem here is that indicators are always lagging. Unless you are trading on a longer time horizon, and the momentum allows a more sustained move, trading just by looking at indicator will very often make the trader enter the market too late. What I did here, was to look at price FIRST and letting the indicator marks the start and end of each move. As long as the support and resistant levels are intact, the price will tend to oscillates in the same direction and you may take trades accordingly in conjunction with a larger trend chart.