OsMA Trend Indicator

alessio09

Master Trader
Jun 9, 2009
168
0
47
OsMA trend indicator is simply the difference between the MACD and its signal line. If the price is going to higher highs, but the oscillator is not then you have regular divergence. If the price is goimng to lower lows, but the oscillator isn’t, this is also treated as regular divergence. A regular divergence is used as asign for a trend reversal movement.

If the oscillator is making higher highs, but the price isn’t, then you have hidden divergence. If the oscillator is making lower lows, but the price isn’t, this also called hidden divergence. A hidden divergence is used a possible sign for a trend continuation.

Find more about trend indicators at Technical Analysis page.