OsMA

AAA

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.

INVESTOPEDIA EXPLAINS '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.

RELATED TERMS
  1. Chaikin Oscillator

    An oscillator which measures the accumulation distribution line ...
  2. McClellan Oscillator

    A market breadth indicator that is based on the difference between ...
  3. Technical Analysis

    A method of evaluating securities by analyzing statistics generated ...
  4. Relative Strength Index - RSI

    A technical momentum indicator that compares the magnitude of ...
  5. Stochastic Oscillator

    A technical momentum indicator that compares a security's closing ...
  6. Oscillator

    A technical analysis tool that is banded between two extreme ...
Related Articles
  1. Active Trading Fundamentals

    Simple Moving Averages Make Trends Stand Out

    The moving average is easy to calculate and, once plotted on a chart, is a powerful visual trend-spotting tool.
  2. Trading Strategies

    MACD Histogram Helps Determine Trend Changes

    Learn how this momentum indicator is used to determine price action on a stock.
  3. Active Trading

    An Introduction To The Relative Strength Index

    Learn the difference between relative strength and the relative strength index, a frequently used technical analysis oscillator.
  4. Active Trading

    An Introduction To Oscillators

    Find out how this indicator may help improve the average investor's entry and exit points.
  5. Chart Advisor

    ChartAdvisor for December 19 2014

    A weekly technical summary of the major U.S. indexes.
  6. Trading Strategies

    What does a double bottom tell a trader about the overall trend?

    Learn how a double bottom pattern forms on a price chart and why many traders consider double bottoms to be a sign of reversal in the price trend.
  7. Trading Strategies

    What are the main differences between a double top and a double bottom?

    Identify double tops and double bottoms, and learn what each could mean for the security's current price trend. Discover how other indicators verify movements.
  8. Technical Indicators

    What are common trading strategies used when identifying a double bottom

    Use simple, low-risk trading strategies to take advantage of a double bottom formation. Traders typically take one of these approaches to buying the market.
  9. Forex Strategies

    What are the most common divergence strategies implemented in forex trading?

    Discover common divergence strategies that utilize either stochastics or the MACD, the two most frequently used momentum indicators in forex trading.
  10. Technical Indicators

    What is a common price target when identifying a double bottom?

    Learn how to identify a double bottom stock pattern and where to set a target selling price point to get the most out of your investment.

You May Also Like

Hot Definitions
  1. Commodity

    1. A basic good used in commerce that is interchangeable with other commodities of the same type. Commodities are most often ...
  2. Deferred Revenue

    Advance payments or unearned revenue, recorded on the recipient's balance sheet as a liability, until the services have been ...
  3. Multinational Corporation - MNC

    A corporation that has its facilities and other assets in at least one country other than its home country. Such companies ...
  4. SWOT Analysis

    A tool that identifies the strengths, weaknesses, opportunities and threats of an organization. Specifically, SWOT is a basic, ...
  5. Simple Interest

    A quick method of calculating the interest charge on a loan. Simple interest is determined by multiplying the interest rate ...
  6. Special Administrative Region - SAR

    Unique geographical areas with a high degree of autonomy set up by the People's Republic of China. The Special Administrative ...
Trading Center