Our custom developed Forex OsMA Color Indicator. OsMA is an abbreviation for the term oscillator of a moving average (MA). The OsMA is a technical indicator that shows the difference between an oscillator and its moving average over a given period of time. The MACD is most common oscillator used in the OsMA indicator, although any oscillator can be used. The MACD has a built-in moving average, which is the signal line. The signal line is an average of the MACD line. The OsMA is the difference or space between these two lines, usually drawn as a histogram. It can provide trend confirmation as well as possible trade signals.
- The OsMA is a combination of an oscillator and a moving average of that oscillator. It measures the distance between these two values.
- The MACD is a commonly used oscillator that has a built-in moving average. Therefore, the MACD histogram is an OsMA which shows the difference between the MACD line and the signal line.
- Any oscillator and any moving average (MA) of it can be used to create an OsMA.
- MAs (of an oscillator) move slower than the oscillator. Therefore, an increasing OsMA is bullish as prices are rising.
- A decreasing OsMA is bearish as prices are falling.
- When the OsMA goes from negative to positive that may indicate an uptrend is starting.
- When the OsMA goes from positive to negative that may indicate a downtrend is starting.
- Generally, when the OsMA is positive it helps confirm a price uptrend, and when negative helps confirm a downtrend in price.
Feel free to use this indicator together with our other technical indicators (oscillators, momentum) or price action methods to maximize your trading accuracy.
The EUR/GBP 15 minute chart below displays the Forex OsMA Color Indicator in action.
Copy and paste the Forex OsMA Color 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)
How to remove Indicator from your Metatrader Chart?
- Select the Chart where is the Indicator running in your Metatrader 4 Client
- Right click into the Chart
- “Indicators list”
- Select the Indicator and delete