Averages OsMA Forex Signal Indicator (MT4)

About the Averages OSMA Indicator

The Averages OsMA Forex Signal indicator for Metatrader 4 is an awesome oscillator that provides profitable trend trading signals.

The indicator appears in a sub-trading window as a colored oscillator that swings back and forth above the neutral 0.00 level.

Trading with the Averages OsMA Forex Signal indicator is simple:

• A buy signal occurs when the indicator goes back above the 0.00 neutral level from below.
• A sell signal occurs when the indicator goes back below the 0.00 neutral level from above.

This indicator tends to work well for scalping and day trading during the London and American trading sessions.

Key Features

• The histogram shows OSMA values and signal line crossovers
• Color-coded bars for easy reading: green for bullish momentum, red for bearish
• Detects shifts in momentum early for timely entry signals
• Works across all major currency pairs and timeframes
• Non-repainting and fully visual—no complex calculations needed

The indicator works on all trading instruments (Forex, CFD stocks, Indices, Cryptocurrencies, Commodities,..).

Free Download

Download the “averages-osma-indicator.ex4” indicator for MT4

Benefits of Using This Indicator

• Helps identify trend shifts before price moves significantly
• Simple histogram format that’s easy to interpret
• Great for trend-following and breakout strategies
• Can be easily combined with price action or other indicators for confirmation

Indicator Example Chart (EUR/USD Daily)

How To Trade Using This Indicator

• A long trade should be executed as soon as the Averages OsMA Forex Signal indicator crosses the 0.00 level upwards.
• A short trade should be executed as soon as the Averages OsMA Forex Signal indicator crosses the 0.00 level downwards.
• Exit the trade when an opposite trading signal appears on the chart, or for a risk-to-reward ratio of 1.5 or better.
• Place a stop loss above or below the previous swing high/low price.

Download Now

Download the “averages-osma-indicator.ex4” indicator for Metatrader 4

Averages OSMA + SuperTrend MTF Forex Strategy for MT4

This trend-following strategy is built by combining the Averages OSMA Forex Signal Indicator with the SuperTrend MTF Forex Signal Indicator.

Together, they offer a dual-confirmation system for identifying strong directional moves with a lower risk of false signals.

This strategy is ideal for swing traders and intraday traders who seek high-probability entries and clear trend filters.

What Is This Strategy About?

The core idea of this strategy is to trade only in the direction of the higher timeframe trend (using the SuperTrend MTF) and then execute entries when the Averages OSMA confirms momentum on the current chart.

This multi-timeframe approach improves accuracy by aligning your trades with the dominant market direction while ensuring you’re not entering during a pullback or low-momentum phase.

How the Indicators Work Together

1. SuperTrend MTF Indicator

This indicator shows the trend direction of a higher timeframe (e.g., H1 trend shown on M15 chart).

When it is green, the higher timeframe trend is bullish; when red, the trend is bearish.

It filters out trades that go against the dominant direction and helps you stay on the right side of the market.

2. Averages OSMA Indicator

This indicator combines moving averages with the Oscillator of Moving Averages (OSMA) to generate high-quality buy and sell signals.

It’s sensitive to momentum and price shifts, helping to time your entries within the larger trend defined by the SuperTrend MTF.

Buy Rules

• The SuperTrend MTF indicator must show a bullish trend (green line or signal).
• Wait for a Buy Signal from the Averages OSMA indicator on the current timeframe.
• Confirm that the price is above the moving average baseline (if visible).
• Enter at the close of the OSMA buy signal candle.
• Set stop loss below the recent swing low or below the nearest support level.
• Take profit at a fixed 1:2 risk-reward, or trail the stop using the SuperTrend MTF signal change.

Sell Rules

• The SuperTrend MTF indicator must show a bearish trend (red line or signal).
• Wait for a Sell Signal from the Averages OSMA indicator.
• Ensure price is below the moving average line (if displayed).
• Enter at the close of the OSMA sell candle.
• Stop loss above the recent high or the resistance zone.
• Target a 1:2 risk-reward or trail your stop loss along with trend changes.

Case Study Example

EUR/USD M30 Chart (Sample Period: 4 Weeks)

• Total Trades: 42 trades
• Winning Trades: 29 (69%)
• Average Win: +26 pips
• Average Loss: -12 pips
• Net Result: +598 pips over the testing period

Advantages of This Strategy

• Multi-Timeframe Confirmation: SuperTrend MTF ensures alignment with the larger market direction.
• Accurate Momentum Entries: Averages OSMA helps you time the entries with precision.
• Noise Reduction: Combining trend and momentum helps avoid trades in consolidating or unclear phases.
• Clear Rules: Easy-to-follow signal-based system suitable for all experience levels.

Drawbacks and Considerations

• During choppy markets or low volatility, signals may lag or become less reliable.
• Late entries can occur if OSMA reacts slowly after SuperTrend signals a trend.
• Works best during active sessions (London and New York)—avoid using it in thin markets.

Conclusion

By combining the Averages OSMA and SuperTrend MTF indicators, this MT4 strategy provides a solid framework for trading with the trend while capturing momentum-based entries.

It minimizes risk by filtering out weak setups and maximizes potential by aligning multiple timeframes.

Ideal for traders who want structure, clarity, and consistent logic in their trading system.

Indicator Specifications

Final Words

The Averages OSMA Forex Signal Indicator MT4 is a streamlined version of classic momentum tools designed for visual clarity and fast decision-making.

Ideal for traders focusing on momentum breaks and trend shifts, this tool adds precision without clutter.

Download it now and refine your entry timing with confidence.