Oscillator Moving Average (OsMA) — Indicator by anexas

macd osma oscillator convergence divergence

This code for Oscillator of Moving Averages (OsMA) is based on MACD 4C indicator code published by vkno422. Many thanks to vkno422. I have borrowed the concept of 4 colours which I find very useful.

For those who are not familiar with OsMA, it is histogram of difference between MACD (oscillator) and its MA (signal line). The zero line cross over of this indicator is used in many strategies.

This version includes MACD & its signal line together with OsMA histogram. I have programmed flexibility for switching OFF/ON individual indicator components as well as changing the periods for various moving averages.

I am dedicating this indicator to the TV trading community hoping that people will find it useful.

Open-source script

In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in a publication is governed by House Rules. You can favorite it to use it on a chart.

Disclaimer

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//Indicator - Oscillator of Moving Averages.
//Histogram of difference between MACD (oscillator) and its MA (signal line)
//Version 2.0 Created on 14 July 2016 by - Shailesh Saxena
//code based on MACD 4C indicator code published by vkno422
study(shorttitle = "OsMA", title = "Oscillator Moving Average")

//User Inputs
fastMA = input(title="Fast MA Period", type = integer, defval = 12, minval = 3)
slowMA = input(title="Slow MA Period", type = integer, defval = 26, minval = 3)
smoothing = input(title="MACD MA Period", type = integer, defval = 9, minval = 3)
sLine = input(title="Show Signal Line", type=bool, defval=true)
MACD_visible = input(title="Show MACD", type = bool, defval = true)
OsMA_histogram = input(title="Show OsMA Histogram", type = bool, defval = true)

//MACD
[MACD,signalLine,_] = macd(close[0], fastMA, slowMA, smoothing)
show_MACD = MACD_visible ? MACD : na

MACDColor = MACD > 0 
    ? MACD > MACD[1] ? lime : green 
    : MACD < MACD[1] ? red : orange
plot(show_MACD, style = line, color = MACDColor, linewidth = 1)
plot(0, title = "Zero line", linewidth = 1, color = gray)

sl = sLine ? signalLine : na
plot(sl, color = yellow, linewidth = 1)

//OsMA
OsMA = OsMA_histogram ? MACD - signalLine : na

OsMAColor = OsMA > 0 
    ? OsMA > OsMA[1] ? aqua : teal 
    : OsMA < OsMA[1] ? fuchsia : purple
plot(OsMA, style = histogram, color = OsMAColor, linewidth = 2)
plot(0, title = "Zero line", linewidth = 1, color = gray)