We present to your attention the Moving Average of Oscillator indicator which task is to show MACD indicator value difference with its signal line.
It is placed in the section Indicators - Oscillators
it looks as following at the chart:
Settings of the indicator
FastEMA – exponential moving average with the small period. Value of MACD histogram is calculated by taking away the fast EMA from slow.
SlowEMA – exponential moving average of the price with a big period.
SignalSMA – simple moving average of MACD values (the alarm line) which task is smoothing of the histogram.
The Average of Oscillator indicator as well as any other indicator has the shortcomings, one of which, is a large number of false signals. But if to trade only on a trend this quantity can be reduced considerably.
As we see at the pic above, the indicator taking into account a trend gives very good signals. This assistant is the nearest relation of the MACD indicator and will suit those traders who want to track zones of overbuy and oversell. We wish you high profit.