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Price Oscillator

The Price Oscillator (PO) is a technical indicator that compares the current price of an asset with a moving average of the asset’s price to determine if the asset is overbought or oversold. The PO is calculated by subtracting the longer moving average from the shorter moving average. If the PO is positive, it indicates that the shorter moving average is above the longer moving average, which may indicate an uptrend. If the PO is negative, it indicates that the shorter moving average is below the longer moving average, which may indicate a downtrend. The PO can be used to identify potential buying or selling opportunities. It is often used in conjunction with other technical indicators to confirm trading signals.

How to trade price oscillator

  1. If the indicator moves upward direction, after crossing the zero line this suggests a bullish market. Conversely, if the indicator line is moving downward direction, after crossing the zero line, traders tend to take a short position.
  2. The market is bullish if the Price OSC moves up and Crosses zero line. This is the buying signal in the Price OSC Indicator. Also, Price OSC suggests a bearish signal after moving down below the zero line.