Master Oscillator

The Master Oscillator displays five different EMAs of AMAC.

  • The red line is AMAC

  • The orange line is ema(AMAC,5)

  • The yellow line is ema(AMAC,10)

  • The lime line is ema(AMAC,20)

  • The white line is ema(AMAC,50)

The higher the EMA, the less sensitive it is to change in price

Line crossings are powerful validators of trend reversals, but as validators, they tend to be a little late.

That is why it is critical to analyze the lines' movements. It helps us determine the following:

  • if the trend is bullish or bearish

  • if a signal is an entry or an exit

  • if a signal has a high probability of happening or if we should wait for a better entry.

Reading

Traditionally, an AMAC value of 100 or higher indicates an entry into the overbought zone. A reading of -100 or lower indicates an oversold entry condition, and a reading between -30 and +30 is dangerous.

The AMAC will rise as the trend is bullish and will fall when the trend is bearish.

When the AMAC crosses below the 0 value, we consider the bullish trend fully exhausted, and when it crosses over the 0 value, we consider the bearish trend fully exhausted.

Zones (Background)

The vertical zones indicate suitable moments to enter into a position (only if there are other concordant signals) by analyzing the age and the behavior of AMAC. There are four zones for short entries and four others for long entries, which are classified by their strength: the brighter, the stronger.

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