DEFINITION of 'OsMA'

An abbreviation for Oscillator - Moving Average. OsMA is used in technical analysis to represent the variance between an oscillator from its moving average, over a given period of time. Typically the primary line of the MACD will serve as the oscillator, with the signal line of the MACD then acting as the moving average. The OsMA relationship is one of the most fundamental in technical analysis.

BREAKING DOWN 'OsMA'

The oscillator is a useful indicator of trend and relationship between data, which can signal when a security may be overbought or oversold, due to results of price and/or volume oscillators. The MACD is the most commonly used indicator for determining this relationship in technical analysis, however, many other indicators have been developed for similar purposes, making use of different oscillators and moving average calculations.

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