Oscillator

What

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.

How

    (Shorter Moving Average - Longer Moving Average)

  ___________________________________________       x 100

                    Longer Moving Average

When

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.