First, if the current OSC indicator is close to the upper boundary or the limit of the lower boundary, it is the most practical time. If the OSC indicator is close to the upper boundary, it means that the current foreign exchange market is in an overbought state. On the contrary, if the OSC indicator is infinitely close to the lower boundary, it is in an oversold state. Either situation shows that the current exchange rate trend has been going on for a long time and is likely to change in the future.

Second, if the single oscillator index is currently at a limit position and the movement direction between the OSC index and the exchange rate shows a Bailey situation, it is a relatively important early warning signal.

Third, if the OSC index follows the fluctuation trend of the exchange rate and breaks through the zero line, it is likely to be an important buying and selling signal sent by the market.