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Moving Average Oscillator

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.

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