If you have been trading Binary Options for a while, you must have realised the importance of high-quality trading indicators and how severely they can impact your trading results.
Therefore, Today In this article I will share a very underrated but very high-quality trading indicator name OSMA.
In this article, I will help you find trading opportunities using the OSMA indicator and find the best entry and exit points using the same.
What is the OSMA (Oscillator of a Moving Average)?
OSMA or you can call it the Oscillator of a Moving Average is a technical analysis tool that displays the difference between an oscillator and its moving average over a given period of time.
The most common oscillator used in the OSMA indicator is the MacD or Moving Average Convergence Divergence indicator and its signal line.
With the OSMA Indicator, the traders can gain insight into whether the market is gaining bullish or bearish momentum plus you can identify the trend reversal or analyse the momentum.
Use of OSMA Indicator
OSMA Indicator is a high-quality trend indicator and can be used for multiple purposes such as
1> Trend identification: The OSMA Indicator identifies the current trend in the market. If you see a positive OSMA line for a very long duration it signals a bullish trend and vice versa, If you see a negative OSMA line for a very long duration it signals a bearish trend.
2> Reversal identification: You can even identify the trend reversals using the indicator when you see small histogram spikes above the midline it signals a change in trend from negative to positive and vice versa, when you see small histogram spikes below the midline it signals a change in trend from positive to negative.
3> Analyse momentum: You can even analyse the momentum using the same. when you see a big histogram spike above the zero line it signals that the trend is likely to continue for a long duration.
How to find an apply OSMA Indicator on Pocket Option
Osma indicator is a free-to-use technical analysis tool and you can find the indicator easily on the Pocket Option demo chart. To apply this indicator on the Pocket Option follow the steps given below
1> Login to your Pocket Option account: The first and foremost step is to log in to your trading account In case you don’t have one click here.
2> Open the trading chart: Once you have logged you will land on the Pocket option trading dashboard.
3> Set a default chart to candlestick: Next, click on the chart button at the top of the page and find the candlestick chart in the list make sure to choose a long-duration time frame chart as this indicator works best with long-duration charts.
4> Apply the indicator: Lastly, find the indicator button at the top of the page search for the indicator name and apply necessary amendments based on trading requirements once you are done click apply.
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