OsMA overbought and oversold. Forex indicator for MT4
This highly informative indicator applies overbought/oversold levels for more accurate representation of the market situation.
It is also possible to change the appearance of the indicator - line or histogram.
Additional parameters enable more fine-tuning, while trading can be inside the channel and along a trend.
Distinctive features
- Oversold/overbought levels;
- Does not redraw.
- Displayed as a line or a histogram;
- Works on all timeframes and symbols.
- Suitable for manual trading and development of Expert Advisors.
For more accurate entries and additional confirmation of signals, it can be used in conjunction with other indicators.
Options
- FastEMA - fast moving average period;
- SlowEMA - slow moving average period;
- SignalSMA - signal moving average period period;
- ExtPeriod - period to calculate oversold and overbought levels.
- Line_or_Histo - display the indicator as a line (true) or a histogram (false).
Trading recommendations
- If the histogram (line) is near 100 or -100, the price reversal probability is high.
- If the histogram (line) crosses 50 or -50, the price will most likely continue moving in the same direction.
- If the histogram (line) exceeds 0 and the Highs increase, there is an uptrend.
- If the histogram (line) is below 0 and the Lows decrease, there is a downtrend.
- Local Highs and Lows on the histogram show that the price may reverse or start correction.
- If the histogram (line) crosses the zero line downwards, it is a sell signal. If it crosses the zero line upwards, it is a buy signal.
- Classic divergence signals between the indicator and the price chart - additional confirmation signals.
- The direction of the deal should correspond to the direction of the trend on the higher timeframes.
- Close the deal by an opposite signal or by the defined SL and TP levels.
- When using SL and TP, it is recommended to set SL beyond the nearest extremum, TP = 1..2 SL
- Works well with an additional channel trading filter - The Channel indicator is suitable for this purpose.
Возможны и другие варианты, в процессе торговли вы сможете выработать наиболее удобную для вас тактику.
Дополнительную информацию и более подробный обзор методов торговли смотрите здесь:
Trading strategies with indicator OsMA obs
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