This oscillator was made "popular" by Linda Bradford Raschke (LBR), and you can find plenty of information regarding her techniques throughout the internet. You can also find plenty of information dealing with the 3/10macd, as well as tips in how I use it, within this blog and particularly in the documents listed in the sidebar on the right hand side (just request to view and I will gladly accept).
And, here you can read a Q&A pertaining to the 3/10 macd.
You can use this on any time frame and it helps in highlighting the momentum behind moves; especially tops and bottoms where it can tip off divergences. Be warned however, like most oscillators, it is not very helpful in extremely high or low momentum environments. So, where there are sideways choppy markets and large momentum thrusts (including gaps), you may want to employ a different approach without this oscillator.
To me, this is an invaluable tool for short-term trading as it is very responsive to price, helping to smooth some of the noise which may be distracting.
Here are a few examples of some simple divergences:
Also handy, this oscillator can help alert you to a new higher high or lower low. Known as the "First Cross" you will notice that when the slow line crosses above or below the zero line for the first time and the fast line corrects into it, we have a First Cross buy or sell trigger.