Color OsMA Indicator
Platform: MT4 Type: Momentum Last update: September 28, 2024The Color OsMA Indicator for MT4 is based on the Oscillator of Moving Average, but this one shows colored histogram bars. It is rather a simple tool that comes in handy in the determination of markets trend momentum.
How to understand the color osma readings?
The Color OsMA Indicator should be rather treated as a supplement to a forex strategy than a standalone trading tool. It displays green and red histogram bars – green for a bullish momentum and red for a bearish momentum. In this example, we added a 100-period Exponential Moving Average to determine the overall trend direction. Detailed instructions are provided below.
Buy Signal
Follow these steps for a long trade:
- Price floats above the moving average
- Histogram bars of Color OsMA changes from red to green
- Price swings higher from recent low swing
- Buy trade is triggered after the above conditions are met
- Set stop loss a few pips below the last swing low of the market
- Take profit after reaching at least 1:1 R:R ratio or use your own method of trade exit
Sell Signal
Follow these steps for a short trade:
- Price sinks below the moving average
- Histogram bars of Color OsMA changes from green to red
- Price swings lower from recent high swing
- Sell trade is triggered after the above conditions are met
- Set stop loss a few pips above the last swing high of the market
- Take profit after reaching at least 1:1 R:R ratio or use your own method of trade exit
