Forex Indicator OsMA settings:
The OsMA indicator (Moving Average of Oscillator) is quite a non-standard indicator, the main purpose of which is to identify bearish and bullish divergences (inconsistencies between the directions of the oscillator’s movement and the price). The tool is not very in demand among modern traders, as, in fact, it does not differ much from the much more famous and popular MACD. Nevertheless, there are differences, and it is by no means a fact that the comparison is always in favor of the “big brother”.
The operating principle of the OsMA indicator is largely understandable already from the name, in the English translation of the signifying “Moving Average Oscillator”. The indicator is calculated as the difference between the values of the MACD oscillator and its signal line. The latter is the same mentioned in the name of the moving average. The results are displayed on a graph in the form of columns that grow or fall relative to the zero line.
OsMA indicator and divergence
In practice, all modern oscillators are good determinants of divergence, which at all times has been associated with strong trading signals. Moving Average of Oscillator can be safely called one of the leaders among its “fellow”.
In the case of the formation of a bearish trend, which is the most favorable period for sale, the price on the chart starts to grow steadily, and the vertices of the Moving Average of Oscillator move equally in the opposite direction.