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Moving Average of Oscillator

Moving Average of Oscillator is calculated by finding the difference between the oscillator and oscillator smoothing.

Usage of Moving Average Convergence/Divergence

Section titled “Usage of Moving Average Convergence/Divergence”

In this particular case, Moving Average Convergence/Divergence (MACD) base-line is used as the oscillator, and the signal line is used for smoothing.

OsMA is the difference between the MACD and its signal line; it crosses zero when the two lines cross.
OSMA = MACD - SIGNAL

Where:

  • MACD is the main MACD line (fast EMA minus slow EMA);
  • SIGNAL is the signal line of the MACD.

A value above zero means the MACD is above its signal line. When OsMA crosses the zero line, the MACD crosses its signal line.