The Moving Average of Oscillator (OsMA) indicator is a variation of the MACD indicator and belongs to leading indicators, since its buy or sell signals come earlier than in other indicators.
It is used to confirm a trend reversal or correction.
The chart of the Moving Average of Oscillator indicator is a histogram which allows to display overbought and oversold conditions in the market. Since the indicator is identical to the MACD indicator, it is believed that their combined use gives a greater effect.
The Moving Average of Oscillator (OsMA) technical indicator is the difference between the oscillator and the oscillator smoothing. In this case, the main MACD line is used as an oscillator, and the signal line is used as smoothing.
The indicator view in the chart:
The indicator has the following parameters:
Period
Long Period - setting of the long period calculation.
Short Period - setting of the short period calculation.
Signal Period - setting of the signal line calculation.
Drawing
Panel - selection of the indicator location in the chart:
- New panel
- Chart
Moving Average of Oscillator
Show value - display of the indicator value on the price scale on the left.
Scale/Auto-scaling - if this option is on, the scale will be automatically calculated, based on the minimum and maximum indicator values, so that the indicator would fit in the chart.
Color - color setting of the indicator.
Visual type - visual setting of the indicator display in the chart:
- Line
- Histogram
- Hash
- Block
- Cross
- Square
- Dots
- Up arrow
- Down arrow
- Axis label
- Hide
Line style - setting of the line display style:
- Solid
- Dash
- Dash - dot
- Dash - dot - dot
Width - setting of the indicator line width.
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