Color Osma

The Color OSMA indicator for MT4 is an oscillator of moving average (OSMA) tool for identifying trend directions and reversal zones of financial instruments. It helps traders in spotting short-term trading opportunities in the market.

Features of the Color OSMA Indicator for MT4

The indicator is a component of the popular MACD indicator. It comes with a green and red histogram bar, a fast and slow EMA, a signal line, and a zero line. The indicator signals a bullish trend when a green histogram is displayed above the zero line, while a bearish trend is when a red bar is below the line.

Furthermore, the green and red histogram bars are signals for buy and sell entries. So, traders may look for a buying opportunity when the green bar is above and sell when the red bar is below the zero line.

Benefits of Using the Indicator

• Trend Identification: The indicator can help traders identify the market trend direction of any financial instrument on the MT4 platform. This helps traders to analyze the market condition and make objective trading decisions easily.
• Signal Confirmation: The indicator can also be used to confirm buy/sell entries besides helping traders identify trend direction. Forex traders can use the indicator with price action or other technical indicators to confirm an optimal buy or sell entry zone.
• Divergence Detection: Finally, the indicator can also help traders identify bullish and bearish divergences in the market.

Indicator Settings Description

The indicator comes with the following customizable settings:

FastEMA: Determines the period for the fast EMA.

SlowEMA: Determines the period for the slow EMA.

SignalSMA: Determines the period for the indicator’s signal line.