The Moving Average of Oscillator (OsMA) is a nifty tool that helps traders gauge market momentum. Essentially, it represents the difference between the oscillator and its smoothing mechanism. In this setup, we use the Moving Average Convergence/Divergence (MACD) as the oscillator and the signal line for smoothing.
Moving Average of Oscillator, OsMA
To put it simply, OsMA is calculated as follows:
OSMA = MACD - SIGNAL
What is OsMA?
OsMA is a great indicator for traders looking to understand market trends and shifts. By analyzing the differences between the MACD line and its signal line, traders can identify potential buy and sell signals. When the OsMA value is above zero, it suggests bullish momentum, while a value below zero indicates bearish momentum.
For a deeper dive into how OsMA works, check out the full description in the Technical analysis: Moving Average of Oscillator.
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