What indicator should the OSMA indicator be used with?

　　What indicators should OSMA indicators be used with? The OSMA indicator usually needs to be used in conjunction with the MACD indicator, with the main purpose of determining whether the MACD is accelerating. Combining these two indicators can make it easier for traders to read the MACD indicator, and also provide a good foundation for further designing mechanized and quantitative systems around the MACD.

　　The OSMA indicator is specifically designed for the MACD indicator, and is also displayed in the form of a bar chart to show the distance between the MACD signal line and the energy column (DIF). When the MACD energy column is equal to the signal line value, the OSMA value is 0; When the MACD energy column is above the signal line, the OSMA value is positive; When the MACD energy column is below the signal line, the OSMA value is negative.

　　Note: If the value of OSMA is higher than 0, it helps to confirm the price increase. If the value of OSMA is below 0, it helps to confirm a price decline.

　　What are the advantages and disadvantages of OSMA indicators?

　　1. Advantages

　　The main advantage of OSMA indicators is that they can easily and intuitively identify oversold or overbought levels in the market. However, when trading in reverse under overbought or oversold conditions, it is important to manage the risk, as if the reversal is not achieved, there will eventually be an incorrect trend in trading.

　　2. Disadvantages

　　The biggest drawback of the OSMA indicator is its extensive use of moving averages, which means it is a lagging indicator. In volatile markets, this indicator often generates erroneous signals, so it may be better to use it as a tool to confirm changes in trend conditions.

　　The above is today's introduction to OSMA indicators, and the above content is for your reference only.