OsMa Indicator Definition
Moving Average of Oscillator (OsMA) is a technical analysis tool that reflects the difference between an oscillator (MACD) and its moving average (signal line).
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Test the Indicator in Action
Once opened Demo you will be supplied with educational materials and online support in your own language
How to Use OsMa Indicator
The OsMa is displayed as a histogram - up or down from the zero line. The values of OsMa are positive, if MACD is above the signal line, and negative, if MACD is below the signal line.
Extremum points:
- OsMA switching from falling to rising in extreme areas may be a sign of bullish reversal;
- OsMA switching from rising to falling may be a sign of bearish reversal.
Crossing zero axis:
- OsMA rising above zero (corresponds to MACD crossing from below its signal line) generates a buy signal;
- OsMA falling below zero (corresponds to MACD crossing from above its signal line) generates a sell signal.
Moving Average of Oscillator (OsMA) Indicator
Moving Average of Oscillator Formula (Calculation)
The moving average of oscillator is calculated as the difference between the oscillator and its signal line.
OsMA = MACD – Signal
How to use in trading platform
Use indicators after downloading one of the trading platforms, offered by IFC Markets.
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