The OsMA is an abbreviation used for term oscillator of moving average. It is technical indicators that measure the variance between the moving average and an oscillator during a given period. The most common oscillator is Moving Average Convergence Divergence (MACD) that is used in OsMA indicator.
The formula for the oscillator of moving average (OsMA) is
OsMA = Oscillator Value−Moving Average Value
The OsMA is calculated by selecting the moving average and the number of period of MA. After that select an oscillator and time frame it will be founded on. Calculate the value of both the moving average and oscillator. Measure the difference between moving average and oscillator to get oscillator of the satisfying average reading; this can be a negative or positive number.
The OsMA readings above zero indicate a significant rise in prices while values below zero confirm falling prices. Crossovers also play an essential role to determine the expected market trend. A crossover occurs when the oscillator crosses below or above its moving average.
If oscillator values cross above the moving average, the OsMA will be positive and indicates the rise in price. In contrast, if oscillator values drop below the values of moving average, OsMA will be negative and signals the price is falling.
Remember that OsMA is lagging technical indicator which sometimes provides outdated information’s. Sometimes OsMA indicates a strong uptrend with positive values, but price sharply falls. The indicator is too slow to signify a trend even though the price has dropped considerably already.