The ZigZag OsMA indicator for Metatrader 5 is an oscillator that provides signals for both entry and exit points, utilizing a combination of ZigZag and OsMA.
The indicator gets loaded in a separate chart window as white-colored bars that oscillate above and below the 0 level.
Interpreting these bars is straightforward: a white bar positioned above the zero level indicates a bullish sentiment, while a bearish sentiment is suggested by a white bar below the zero level.
How to identify strong bullish and bearish market sentiments?
- A sequence of consecutive white bars above the zero level signifies a bullish trend in the market.
- A series of consecutive white bars below the zero level implies a bearish trend in the market.
The indicator includes several inputs and parameters, such as MACD periods, depth, deviation, and more.
It is advisable to become familiar with this technical indicator and thoroughly test it on a demo account for an extended period.
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zig-zag-os-ma.mq5 Indicator (MT5)
Chart Example
The picture below illustrates how the ZigZag OsMA indicator looks when applied to the MT5 chart.
How To Buy And Sell Currency Pairs Using The ZigZag OsMA Indicator?
Find a simple trading strategy below:
Buy Signal
- A buy signal is generated when the first ZigZag OsMA bar turns back above 0 from below.
- Open a buy trade and place a stop loss below the previous swing low.
- Close the buy trade for a profit target that suits your preference, for example, +20 pips on the 5-minute chart.
- Alternatively, await a sell signal to close the buy trade.
Sell Signal
- A sell signal is generated when the first ZigZag OsMA bar turns back below 0 from above.
- Open a sell trade and place a stop loss above the previous swing high.
- Close the sell trade for a profit target that suits your preference, for example, +12 pips on the 1-minute chart.
- Alternatively, await a buy signal to close the sell trade.
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zig-zag-os-ma.mq5 Indicator (MT5)
Reversal and Momentum MT5 Strategy Using ZigZag OSMA + Boom and Crash Winner
By combining the ZigZag OSMA Forex Indicator with the Boom and Crash Winner Indicator, you get a reliable setup for identifying trend reversals and confirming momentum.
This strategy is highly effective on Boom and Crash indices, as well as forex charts, especially during active market sessions.
Strategy Concept
- ZigZag OSMA: Highlights key swing highs/lows and divergence patterns using momentum.
- Boom and Crash Winner: Provides visual entry signals for high-probability turning points and trend continuation.
Recommended Settings
- Timeframes: M15, H1
- Markets: Boom 1000, Crash 1000, EUR/USD, GBP/USD
- Sessions: London and New York (for forex); anytime for synthetic indices
Buy Entry Rules
- Wait for the ZigZag OSMA to print a bullish divergence at a recent low (higher OSMA low + lower price low).
- Confirm a buy signal from the Boom and Crash Winner Indicator (e.g., green arrow or bullish pattern alert).
- Enter the trade after the signal candle closes.
- Place stop loss below the last ZigZag low or support zone.
- Take profit at the next swing high or when the Boom and Crash Winner issues a warning/reversal signal.
Sell Entry Rules
- Look for a bearish divergence on the ZigZag OSMA (lower OSMA high + higher price high).
- Confirm a sell signal from the Boom and Crash Winner Indicator (e.g., red arrow or strong reversal zone).
- Sell at candle close after confirmation.
- Set stop loss above the last ZigZag high or resistance level.
- Target the next swing low or exit when reversal signs appear.
Tips for Success
- Always wait for confirmation from both indicators before entering a trade.
- Avoid trading during major news releases or when signals conflict.
- This setup works best when the price is coming off key support/resistance or following a divergence signal.
🔗 Download Boom and Crash Winner Indicator
Frequently Asked Questions
How Do I Install This Custom Indicator On Metatrader 5?
- Open the MT5 trading platform
- Click on the File menu button located at the top left part of the platform
- Click on Open Data Folder > MQL5 folder > Indicators
- Copy the zig-zag-os-ma.mq5 indicator file in the Indicators folder
- Close and restart the trading platform
- You will find the indicator here (Navigator window > Indicators)
- Drag the indicator to the chart to get started with it!
