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Price
Oscillator
Description
The Price
Oscillator displays the difference between two
moving averages of the security's price. The
difference between the averages can be expressed
in either points or percentages.
Interpretation
Moving
average analysis often generates buy signals when
a short-term moving average (or the security's
price) rises above a longer-term moving average.
Conversely, sell signals are generated when
a shorter-term moving average falls below a
longer-term moving average.
The Price Oscillator illustrates the
cyclical (and often profitable) signals generated
by one or two moving average systems.
Tips
For
more information on moving average systems and
oscillators, refer to Moving
Averages and the MACD. |
