MOVING AVERAGE OF OSCILLATOR
Moving Average of Oscillator is a tool that enables traders to identify the difference between an oscillator (MACD) and its moving average.
HOW TO USE OSMA INDICATOR
The OsMa is presented on the chart in the form of a histogram. Its values are positive if MACD lands above the signal line while it is harmful if MACD lands below the signal line.
- It can be considered a bullish reversal once the OsMa switches from falling to rising in extreme points.
- It is a bearish reversal once the OsMa switches from rising to falling in extreme points.
MOVING AVERAGE OF OSCILLATOR FORMULA
The moving average of an oscillator is identified by subtracting the oscillator and its signal line.
OsMA = MACD – Signal