Interpretation • M-Oscillator is a bounded oscillator that moves between (-14) and (+14), • Movement above 10 is considered overbought, and movement below -10 is oversold.
Overbought/Oversold rule: • Buy when the M-Oscillator violates the (-10) level to the downside and crosses back to the upside. • Sell when the M-Oscillator crosses above the (+10) level and crosses back to the downside.
Crossover on Extreme Levels • Sell signals are triggered when the M-Oscillator crosses its signal line above (13), which indicates an extreme market condition • Buy signals are triggered when the M-Oscillator crosses its signal line below (- 13)