{"id":3164,"date":"2020-03-18T18:47:50","date_gmt":"2020-03-18T15:47:50","guid":{"rendered":"https:\/\/roboforex.com\/blog\/?p=3164"},"modified":"2026-05-26T10:53:08","modified_gmt":"2026-05-26T07:53:08","slug":"how-to-trade-with-osma-indicator","status":"publish","type":"post","link":"https:\/\/roboforex.com\/blog\/2020\/03\/18\/how-to-trade-with-osma-indicator\/","title":{"rendered":"How to Trade With OsMA Indicator?"},"content":{"rendered":"\n

In this article, we will get acquainted with the OsMA indicator<\/a>. It helps to find divergences on the price chart and use them for trading.<\/p>\n\n\n\n

<\/span>Description of OsMA indicator<\/span><\/h2>\n\n\n\n

OsMA<\/strong> (Moving Average<\/a> of Oscillator<\/strong>) is an oscillator based on the difference between two Exponential Moving Averages<\/a> and their normalized values. The indicator helps to find and use in trading bullish and bearish divergences of the indicator and price charts. In terms of its calculation method, OsMA is very similar to a better known and more popular indicator – MACD<\/a>.<\/p>\n\n\n\n

In essence, the OsMA indicator is a modification of the MACD<\/a>. For calculating the OsMA, the same MAs as for the MACD are used. The difference between the values of the MACD histogram and its signal line forms a bar of the OsMA histogram. The bigger the difference between the MACD histogram and its signal line – the bigger the OsMA value.<\/p>\n\n\n\n

As other oscillators<\/a>, OsMA gives an idea of what is up on the market. If the OsMA histogram is above 0 and shows another high – this means an uptrend and the overbought state of the market. If OsMA is below 0 and forms local lows – there is a downtrend on the market and an oversold state.<\/p>\n\n\n\n

The OsMA indicator is shown in a separate window under the price chart. It is represented as a bar chart. The indicator values are not normalized, the central axis is 0. OsMA is included in most popular trading platforms, such as MetaTrader 4<\/a> and MetaTrader 5<\/a>.<\/p>\n\n\n\n

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<\/span>Characteristics and settings of OsMA<\/span><\/h2>\n\n\n\n

To add the indicator to the price chart on MetaTrader 4 or 5, click the Main Menu: Insert – Indicators<\/a> – Oscillators – Moving Average of Oscillator<\/p>\n\n\n\n

The formula for calculating the indicator is as follows:<\/p>\n\n\n\n

OsMA = MACD - SMA (MACD); MACD = ЕМА12 - ЕМА26<\/strong><\/p>\n\n\n\n

Where:<\/p>\n\n\n\n

MACD<\/strong> is the value of the MACD histogram, calculated as the difference between to Exponential Moving Averages (EMAs)
EMA<\/strong> is the Exponential Moving Averages
SMA<\/strong> (MACD) is the signal line of the MACD, a Simple Moving Average.<\/p>\n\n\n\n

When installing the OsMA indicator, the following parameters must be set up:<\/p>\n\n\n\n