The OsMA Divergence MT4 indicator is a versatile Forex indicator that delivers good results on virtually any pair.
The indicator can be used in 2 ways:
- It checks for divergences between price and the OsMA indicator (price action).
- It can be easily used to buy and sell currency pairs on any time frame.
Understanding its buy and sell trends:
- A buy trend occurs when the red and blue OsMA Divergence indicator lines are positioned above the 0.00 level.
- A sell trend occurs when the red and blue OsMA Divergence indicator lines are positioned below the 0.00 level.
Furthermore, the colored OsMA Divergence histogram works for scalping purposes and gives you numerous trade opportunities during the various trading sessions.
- The scalping trend is positive when the histogram turns back above the 0.00 level from below (buy scalp).
- The scalping trend is negative when the histogram turns back below the 0.00 level from above (sell scalp).
Feel free to explore the indicator’s different parameters and settings to create your own personalized indicator setup.
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OsMA Divergence Forex Indicator Chart
Here’s an example of how the indicator should look like when loaded onto the Metatrader 4 chart.
Attach the indicator to any currency pair and time frame of your preference.
Finding Buy and Sell Triggers With The OsMA Divergence Forex Indicator
Below is an example of how to buy and sell currency pairs with this Forex indicator:
Buy Trigger: Buy the Forex pair when the red and blue signal lines cross back above the OsMA Divergence indicator zero level from below. The trend is now bullish.
Place a protective stop loss 3 pips below short-term support, or use your own stop loss placement strategy.
Close the buy trade for a reward/risk ratio of 1.5 or exit when an opposite signal (sell) arrives on the trading chart.
Alternatively, aim for a fixed take profit target, for example, close the OsMA based buy trade for 25 pips on the 5-minute intraday chart.
Sell Trigger: Sell the Forex pair when the red and blue signal lines cross back below the OsMA Divergence indicator zero level from above. The trend is now bearish.
Place a protective stop loss 3 pips above short-term resistance, or use your own stop loss placement strategy.
Close the sell trade for a reward/risk ratio of 1.5 or exit when an opposite signal (buy) pops up on the trading chart.
Alternatively, aim for a fixed take profit target, for example, close the OsMA based sell trade for 40 pips on the 15-minute day trading chart.
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Time frame, OsMA price, fast MA, slow MA, signal MA, method, divergence visible, alerts, arrows, colors, width, style.
The indicator can be used as a stand-alone signals indicator.
It can also be combined with:
- Trend indicators (Moving Average, Bollinger Bands, ADMI, Parabolic SAR,…)
- Price action methods and techniques
More Info About This Indicator
Tradable Currency pairs: Any
Trading Platform: MT4
Time frames: M1, M5, M15, M30, H1, H4, D1, W1
Indicator Type: trend oscillator
Copy and paste the indicator in the MT4 indicators data folder.
Then restart the MT4 terminal and attach it to any chart.