The Oscillator of Moving Average, better known as OsMA is used to identify oversold and overbought market conditions.
The indicators works almost identical to the traditional MACD indicator.
The indicator works perfectly together with a trend following indicator. For example, a longer period moving average would fit.
The indicator fluctuates above and below the zero line.
Above the zero line is considered to be bullish price movement while below the zero line is considered to be bearish price movement.
This indicator can be used for scalping, day trading, swing trading and position trading on any currency pair.
Download the “OsMA.mq4” MT4 indicator
The EUR/USD M15 chart below displays the OsMA forex indicator in action.
Basic Trading Signals
Buy Trade: Go long above the zero line (bullish price movement).
Sell Trade: Go short below the zero line (bearish price movement).
Tip: Add a longer-term moving average to the trading chart and trade in the overall direction of the trend indicated by the longer-term moving average.
Trend up? Only trade OsMA buy signals
Trend down? Only trade OsMA sell signals
Download the “OsMA.mq4” Metatrader 4 indicator
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: chart pattern indicator
Customization options: Variable (Fast EMA Period, Slow EMA Period, Signal SMA Period) Colors, width & Style.
Time frames: 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month
Copy and paste the OsMA.mq4 indicator into the MQL4 indicators folder of the Metatrader 4 trading platform.
You can access this folder from the top menu as follows:
File > Open Data Folder > MQL4 > Indicators (paste here)