A downhole oscillation tool includes a Moineau-type positive displacement pulse motor and a valve assembly for use in a drill string. The pulse motor includes a rotor configured to nutate within the bore of a stator. The rotor has at least two helical lobes that extend the length of the rotor, and the stator bore defines at least three helical lobes that extend the length of the stator. The valve assembly includes a first valve plate connected to the bottom end of the rotor and abuts the second valve plate to form a sliding seal. The second valve plate is fixedly coupled to the stator and remains stationary. First valve ports extend axially through the first valve plate, and second valve ports extend axially through the second valve plate. The first valve ports and second valve ports intermittently overlap as the first valve plate slides across the second valve plate to create pulses in the drilling fluid which is pumped through the tool to power the motor and valve assembly. The tool can generate pulses of different amplitudes and different wavelengths in each rotational cycle. The tool further includes a drop ball assembly configured to activate and deactivate the tool.