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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.
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