Trend Strength OMA Channel Indicator
Platform: MT4 Type: Channel Last update: September 25, 2024The Trend Strength OMA Channel Indicator for MT4 is a trend signal indicator as it detects whenever the market trend condition is overbought or oversold. That forex indicator consists of the main orange signal line displayed within its own window along with the green/red channel and the buy/sell arrows plotted directly on the main chart.
When the orange line is below 0 level, it means the market is oversold and one should be looking for buy trades. Similarly, one should be looking for sell trades when the orange line rises above 0 level.
How to use the Trend Strength OMA Channel in practice?
Below you can read the trading rules for Trend Strength OMA Channel Indicator.
Buy Signal
Follow these steps for a long trade:
- Trend Strength OMA Channel value is negative (below 0) indicating the oversold condition
- The orange line bounces off the green channel band
- An green or blue buy arrow appears
- Open a buy trade
- Set stop loss a few pips below recent market low
- Take profit or exit trade whenever the Trend Strength OMA Channel Indicator provides opposite arrow
Sell Signal
Follow these steps for a short trade:
- Trend Strength OMA Channel value is positive (above 0) indicating the overbought condition
- The orange line bounces off the red channel band
- An red or pink sell arrow appears
- Open a sell trade
- Set stop loss a few pips above recent market high
- Take profit or exit trade whenever the Trend Strength OMA Channel Indicator provides opposite arrow
