Decoded Intelligence Signal
Bounded vs Unbounded Oscillator
intermediate
technical_analysis
Verified: May 27, 2026Lexicon Core Definition
Bounded oscillators (RSI, Stochastic) are constrained to a fixed scale (0–100), so extreme readings always indicate overbought or oversold conditions. Unbounded oscillators (CCI, ROC) have no theoretical limit, so extreme readings may signal trend continuation rather than reversal — requiring different interpretation rules.
Analysis Breakdown
Bounded oscillators (RSI, Stochastic) are constrained to a fixed scale (0–100), so extreme readings always indicate overbought or oversold conditions. Unbounded oscillators (CCI, ROC) have no theoretical limit, so extreme readings may signal trend continuation rather than reversal — requiring different interpretation rules. Full explanation coming soon when Journey 14 content is ingested.