Simple Effective Powerfull

[Draffi]

@shabz: Thank you for the information. i never knew this.

 

but...we dont trade the cross from the AO (zero-line), the rules said you need to enter at the color...

so it is a little different!

[shabz]

Awesome Oscillator, green bars above horizon means 5 sma crossed above 34 sma, red bar above horizon means the 5 sma is retracing back toward the 34 sma. Red bar above Horizon & Green Bar below Horizon are just retracements and should not be treated as entry signals, but possible exits from the previous position.

It is exactly the same as MACD, except the settings are 12 & 26 emas (faster), where it differs is with macd, we can obtain an OSMA histogram created by the difference of the MACD line & its signal line normally set at 9 ema.

 

Both are based on moving averages, so will do well in trending markets, but will whipsaw you in ranging markets.