Derivative Oscillator

Technical analysts are never content to rest on those metric algorithms that have been established when each one thinks a better system can be devised. The derivative oscillator was created by and published by Constance Brown in her book, Technical Analysis for the Trading Professional. Essentially, the derivative oscillator takes two pre-existing metrics: the moving average convergence-divergence (MACD) chart and the Relative Strength Index (RSI) in combination to create a graph that can better signal for buy and sell signs going into relative strength or weakness trends.

Of course, all technical analysis always looks better in retrospect. Using it to predict the future is still more art than science for many.