Oscillators
OsMA: Moving Average of Oscillator
The gap between MACD and its signal line, drawn as bars: a close-up view of MACD's crossovers.
The idea in plain words
When MACD pulls away from its signal line, momentum is accelerating; when they come together, it is slowing. OsMA shows that gap directly, so turns are easy to see.
How it is calculated
MACD minus its signal line.
OsMA = MACD − Signal = (EMA12 − EMA26) − SMA(MACD, 9)How to use it
- OsMA crossing zero is the same moment as MACD crossing its signal line.
- Shrinking bars warn that a move is slowing before a crossover happens.
Drawing conclusions
- Divergences between OsMA and the price are an early warning of trend fatigue.
Example
During a rally, OsMA bars shrink for five candles while the price still edges higher: momentum is fading.
Prices in examples are illustrative.
Watch out for
- Very quick to change; best used as a timing aid with a broader trend view.
A little history
Based on Thomas Aspray's 1986 MACD histogram.
Educational content only. No indicator or pattern predicts the future, and nothing here is investment advice.