Color OsMA Indicator (MT4) - Free Download - Best Forex Indicators

Introduction to the Color OsMA Indicator

The Color OsMA Indicator is based on the Oscillator of Moving Average, but this one shows colored histogram bars. It is rather a simple tool that comes in handy in the determination of markets trend momentum.

The Color OsMA Indicator fits all kinds of timeframes and currency pairs. It is displayed in a separate window placed just below the main trading chart. The default settings can be modified directly from the input tab. Feel free to experiment with the settings and parameters to fit your personal preferences.

How does it work? How to apply in trading?

Trading Rules Explanation

The Color OsMA Indicator should be rather treated as a supplement to a forex strategy than a standalone trading tool. It displays green and red histogram bars – green for a bullish momentum and red for a bearish momentum. In this example, we added a 100-period Exponential Moving Average to determine the overall trend direction. Detailed instructions are provided below.

Buy Signal

Follow these steps for a long trade:

Price floats above the moving average
Histogram bars of Color OsMA changes from red to green
Price swings higher from recent low swing
Buy trade is triggered after the above conditions are met
Set stop loss a few pips below the last swing low of the market
Take profit after reaching at least 1:1 R:R ratio or use your own method of trade exit

Sell Signal

Follow these steps for a short trade:

Price sinks below the moving average
Histogram bars of Color OsMA changes from green to red
Price swings lower from recent high swing
Sell trade is triggered after the above conditions are met
Set stop loss a few pips above the last swing high of the market
Take profit after reaching at least 1:1 R:R ratio or use your own method of trade exit

As always, to achieve good results, remember about proper money management. To be a profitable trader you need to master discipline, emotions, and psychology. It is crucial to know when to trade, but also when not to trade. Avoid trading during unfavorable times and market conditions like low volume/volatility conditions, beyond major sessions, exotic currency pairs, wider spread, etc.

How to set up the Color OsMA indicator in MT4?

Installation Guide

Download the Color OsMA.rar archive at the bottom of this post, unpack it, then copy and paste the Color OsMA.ex4 or Color OsMA.mq4 indicator files into the MQL4 folder of the Metatrader 4 trading platform.

You can gain access to this folder by clicking the top menu options, which goes as follows:

File > Open Data Folder > MQL4 > Indicators (paste here).

Now go to the left side of your MT4 terminal. In the Navigator find the gauge name, right-click it and select Attach to the chart.

Bottom Line

The Color OsMA indicator is well worth adding to your trading collection. A good forex indicator will most probably enhance your chance of success. Nonetheless, remember about having realistic expectations. Just like any other technical analysis tool, is not capable of providing accurate signals 100% of the time. Thus, this forex indicator provides false signals occasionally. Its performance will vary significantly depending on market conditions. Feel free to develop your own trading system based around it. Don’t forget that we still have more great free forex MT4 indicators to download and try.