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Price Oscillator (PO)

The variation between security price moving averages gives the Price Oscillator. It can be expressed in percents as well as in points showing the difference between any averages unlike MACD that shows the variety in points through 12- and 26-day moving averages.

The PO Indicator is a difference between the moving averages, built on the basis of two periods:

PO = MA(P, n1) - MA(P, n2),


MA(P, n1) - moving average of the P price within n1 periods,

MA(P, n2) - moving average of theP price within n2 periods.

Price Oscillator

A buy signal produces while analyzing moving average when either price or short-term moving average exceeds the longer-term one. The price of a shorter-term moving average falling lower than the long-term moving average will give a sell signal. A single line of the Price Oscillator shows signals generated by the system for two moving averages going cyclically and making profitable signs. When the Price Oscillator takes values above zero, it is a signal to buy whether the values below zero give sell signal.

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