Indicator Description

OSC (Oscillator) is a momentum indicator that reflects the overbought and oversold state and trend changes in the market by calculating the difference between price and moving average.

Function Information

• Function Name: OSC
• Input Parameters: Open
• Parameter Settings: timeperiod1 (default: 13), timeperiod2 (default: 5)
• Output: osc, aosc

Calculation Principle

OSC is calculated using the following formula:

OSC = Close - MA(Close, timeperiod1)
AOSC = MA(OSC, timeperiod2)

Where MA is the moving average.

Usage Scenarios

1. Overbought and oversold judgment
2. Trend strength analysis
3. Price mean reversion prediction
4. Trading signal generation

Usage Recommendations

1. OSC turning from negative to positive can be seen as a buy signal
2. OSC turning from positive to negative can be seen as a sell signal
3. Use in combination with moving averages
4. Pay attention to overbought and oversold thresholds