The Colored MACD OsMA indicator for Metatrader 4 operates similar to its scalper version but it colors the candlesticks for the ease of use.
You can clearly identify bullish and bearish trends.
First and foremost, a white colored arrow is a buy signal while a red colored arrow a sell signal.
A green colored candlestick indicates a bullish trend while an orange colored candlestick a bearish trend.
In essence, follow the buy and sell signal arrows.
The picture below is an example of how the Colored MACD OsMA Forex indicator looks like when applied to the EUR/USD 15-minute trading chart.
How to buy and sell currency pairs with the Colored MACD OsMA with signals indicator?
The indicator can be used in multiple ways, please find a classic trading example below:
- A white colored arrow is a buy signal.
- Place your stop loss 3 pips below the most recent support area.
- Close the buy trade for a risk to reward ratio of at least 1:1 or wait for a sell signal.
- A red colored arrow is a sell signal.
- Place your stop loss 3 pips above the most recent resistance area.
- Close the sell trade for a risk to reward ratio of at least 1:1 or wait for a buy signal.
How to I install and run this Forex indicator on Metatrader 4?
- Download the macd-osma-on-chart-mtf-v2.mq4 indicator file here and save it to your computer
- Open the Metatrader 4 trading platform
- From the top menu, click on “File” to open the drop down menu
- Select the “open data folder” and navigate to the “MQL4” folder
- Then navigate to the “Indicators” folder
- Copy the indicator into the “Indicators” folder
- Close the trading platform and restart it
- The indicator will be automatically installed on MT4
- You will find the installed indicator in the Navigator window
- In order to start using it, drag and drop the indicator to the chart