The OsMACD Forex Signal indicator for Metatrader 4 is a directional trend oscillator that delivers high-probability trading signals.
The indicator appears in a sub-MT4 window as a colored trend histogram that’s easy to trade.
The indicator can be used in various ways. I will present you with an example below:
Buy & Sell Trade Example
- Open a buy trade as soon as the first blue colored trend bar appears above the 0.00 level.
- Open a sell trade as soon as the first red colored trend bar appears below the 0.00 level.
The indicator works equally well on all currency pairs (majors, minors and exotic) and shows promising results if used correctly.
Free Download
Download the “OsMACD.mq4” indicator for MT4
Indicator Chart (EUR/USD M30)
The picture below shows the OsMACD mt4 indicator in action on the trading chart.
Trading Tips:
Feel free to use your own favorite trade entry, stop loss and take profit strategy when trading with the OsMACD Forex indicator.
As always, trade in agreement with the overall trend and practice on a demo account first until you fully understand this indicator.
Please note that even the best trading indicator cannot yield a 100% win rate over long periods.
Indicator Specifications & Inputs:
Trading Platform: Developed for Metatrader 4 (MT4)
Currency pairs: Works for any pair
Time frames: Works for any time frame
Trade Style: Works for scalping, day trading and swing trading
Input Parameters: Variable (inputs tab), color settings & style
Indicator type: Signal
Does the indicator repaint? No.
OsMACD + 5 MAs Signal Forex Swing Trading Strategy
This swing trading strategy combines the OsMACD Forex indicator and the 5 MAs Signal indicator to identify medium-term trades in trending markets.
OsMACD, a variation of the MACD, shows histogram bars that reflect momentum strength—crossing above the zero level indicates bullish momentum, while crossing below it signals bearish momentum.
The 5 MAs Signal indicator uses the classic 50- and 200-period moving averages to detect long-term trend direction through their crossover.
The combination works well for swing trading because it filters out short-term noise.
You wait for the moving averages to confirm the overall trend, then use OsMACD zero-line crossovers to time entries.
The system is best applied on H1, H4, and D1 charts across major pairs such as EURUSD, GBPJPY, USDCHF, and AUDUSD.
Buy Entry Rules
- Wait for the 50-period moving average to cross above the 200-period moving average on the 5 MAs Signal indicator. This confirms a bullish trend.
- Once the bullish crossover occurs, monitor the OsMACD indicator.
- Enter a buy position when the OsMACD histogram crosses above the zero level, showing bullish momentum.
- Stop loss: place below the recent swing low or 1.5× the ATR value at entry time.
- Take profit: aim for 2× your risk, or exit when OsMACD crosses back below zero or the 50 MA crosses back under the 200 MA.
Sell Entry Rules
- Wait for the 50-period moving average to cross below the 200-period moving average, indicating a bearish trend.
- Once the bearish crossover forms, observe OsMACD for confirmation.
- Enter a sell trade when the OsMACD histogram crosses below the zero level, signaling downside momentum.
- Stop loss: place above the most recent swing high or 1.5× the ATR.
- Take profit: target at least 2× risk, or close the trade when OsMACD crosses back above zero or the 50 MA crosses above 200 MA again.
Advantages
- Combines long-term trend direction with short-term momentum confirmation for cleaner swing setups.
- Reduces false signals by requiring both a moving average crossover and a momentum shift.
- Suitable for higher timeframes (H1, H4, D1) — fewer trades but higher accuracy.
- Offers clear visual entries and exits with minimal discretionary judgment.
Drawbacks
- The MA crossover can lag, causing late entries after a trend has already begun.
- OsMACD crossovers may produce false signals in sideways markets.
- Performance can drop when the price oscillates around the moving averages.
- Requires patience, as strong signals may appear only a few times per week.
Case Study 1: EURUSD H4
On the EURUSD H4 chart, the 50 MA crossed above the 200 MA, confirming a new bullish phase.
A few candles later, the OsMACD histogram crossed above zero at 1.0760.
A buy was opened with a stop at 1.0705 (55 pips).
Price trended higher, reaching 1.0870 within three days.
The trade yielded around 110 pips, a 2× reward-to-risk ratio. The OsMACD remained positive throughout the move.
Case Study 2: GBPJPY Daily
In a bearish phase, the 50 MA crossed below the 200 MA.
The OsMACD histogram soon crossed under zero near 184.20, prompting a sell.
Stop loss was set at 185.50 (130 pips).
Within four days, GBPJPY dropped to 182.00, hitting the 2× risk target for a 260-pip profit.
The OsMACD stayed negative until the exit point, validating the trade’s direction.
Strategy Tips
- Use the H4 or D1 chart for clean trends and stronger swing potential.
- Wait for both indicators to align — MA crossover first, then OsMACD momentum shift.
- Avoid trading when the 50 and 200 MAs are flat and close together, as that signals consolidation.
- Combine with price action or support/resistance zones to confirm entry areas.
- Consider scaling out partial profits when the price moves 1× your risk to secure gains.
- Backtest with different pairs to find which ones trend best with this setup
By blending the zero-level crossovers of the OsMACD indicator with the major trend direction of the 5 MAs Signal indicator, this MT4 swing trading strategy provides a disciplined, structured approach for capturing large moves.
It filters out market noise and focuses only on high-probability momentum shifts aligned with the dominant trend.
