The moving average oscillator is commonly used as a means of smoothing momentum. The moving average oscillator is calculated by calculating the difference between two moving averages. Because a moving average smoothes price activity, usage of the moving average oscillator intensifies the smoothing affect.Formula:
MAO = MA1 - MA2
Where:
MAO = moving average oscillator
MA1 = moving average 1
MA2 = moving average 2
You specify the moving average types and the number of periods used to calculate the moving averages in the Moving Average Oscillator parameters menu.
