MA Oscillator Trend Forex Trading Strategy

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MA Oscillator Trend Forex Trading Strategy 1

The forex market is one which represents many things to different people. To some it is a source of living. To some it is a source of pain caused by substantial losses. While to some it is a source of unlimited income potential. All of these are true. The question is, which is true to you right now?

Although there is only a very small fraction of market participants who have mastered the forex market and see it as an unlimited source of income, which they could tap in day after day, it is still possible to experience this as traders. Truth is any trader could come in day after day, trade the markets, buy low and wait for price to go higher, sell, then repeat, or vice versa. It is a very simple concept that any should be able to follow. However, many still find it difficult to consistently earn from the forex market. This is because most traders do not understand that trading and forex is a probabilities game. Trading is about stacking the odds in your favor or trading in the direction where the odds of a profitable outcome is high. But how do you do this? How do you determine if the odds of a certain trade setup are high? The answer is confluence.

Confluence simply means convergence or merging together. In technical trading, this simply means the convergence of signals. This refers to the trend direction signals shown by different indicators. By having two or more indicators pointing in one direction and at approximately the same time, we get to have an idea that the probability of the trend continuing on a certain direction is high.

The MA Oscillator Trend Forex Trading Strategy is a trading strategy that is based on the confluence of a couple of indicators, which allows it to have higher probability trade entries.

Moving Average Oscillator

The Moving Average Oscillator, also known as OsMA, is an oscillating indicator based on moving averages.

It is also very closely related to the MACD or Moving Average Convergence and Divergence. In fact, the OsMA is the difference between the MACD and its Signal Line. This makes the OsMA indicator a great entry signal indicator for trend reversal strategies. This is because the crossing over of the OsMA’s bars from positive to negative or vice versa is actually the crossover of the MACD and its signal line.

Forex MT4 Trend Indicator

The Forex MT4 Trend Indicator is a custom technical indicator which shows trend directions quite clearly. It indicates trends by plotting bars on the price chart which becomes bigger whenever the trend is becoming stronger. This indicator also conveniently prints arrows indicating entry signals whenever it detects a change in trend direction.

This indicator closely resembles the characteristics of the Heiken Ashi Smoothed indicator. If you would look at it closely, it has the same movements as the Heiken Ashi Smoothed indicator. Like the Heiken Ashi Smoothed indicator, it also indicates the mid-term trend quite accurately.

Trading Strategy

This trading strategy is a trend reversal trading strategy based on the confluence of the Moving Average Oscillator and the Forex MT4 Trend Indicator. With the right parameters, these two indicators tend to produce high probability entry signals whenever the entry signals are aligned.

To trade this strategy, entries should be taken when the OsMA crosses over from positive to negative or vice versa. The entry signal of the OsMA should also coincide with the printing of arrows and changing of colors of the Forex MT4 Trend Indicator. These two indicators tend to be in confluence whenever the trend is already clearly shifting. By taking these types of trade setups, we get to have a high probability trade, which could also yield high returns.

Indicators:

  • Moving Average of Oscillator
    • Fast EMA: 24
    • Slow EMA: 30
    • MACD SMA: 27
  • forex-mt4-trend-indicator
    • MaMetod: 3
    • MaPeriod: 28

Timeframe: 1-hour, 4-hour and daily charts

Currency Pairs: major and minor pairs

Trading Session: Tokyo, London and New York sessions

Buy Trade Setup

Entry

  • The OsMA histogram bars should crossover from negative to positive indicating a bullish trend reversal
  • The Forex MT4 Trend Indicator should change from red to blue and should print an arrow pointing up indicating the start of a bullish trend
  • The above conditions should be somewhat aligned
  • Enter a buy order on the confluence of the above conditions

Stop Loss

  • Set the stop loss below the Forex MT4 Trend Indicator

Exit

  • Close the trade if the OsMA histogram bars changes from positive to negative
  • Close the trade if the Forex MT4 Trend Indicator changes to red

MA Oscillator Trend Forex Trading Strategy 1

MA Oscillator Trend Forex Trading Strategy 2

Sell Trade Setup

Entry

  • The OsMA histogram bars should crossover from positive to negative indicating a bearish trend reversal
  • The Forex MT4 Trend Indicator should change from blue to red and should print an arrow pointing down indicating the start of a bearish trend
  • The above conditions should be somewhat aligned
  • Enter a sell order on the confluence of the above conditions

Stop Loss

  • Set the stop loss above the Forex MT4 Trend Indicator

Exit

  • Close the trade if the OsMA histogram bars changes from negative to positive
  • Close the trade if the Forex MT4 Trend Indicator changes to blue

MA Oscillator Trend Forex Trading Strategy 3

MA Oscillator Trend Forex Trading Strategy 4

Conclusion

This trading strategy is an inherently high probability trading strategy. This is because individually the OsMA and Forex MT4 Trend Indicator are both high probability trading indicators. If you would use these indicators as standalone indicators, there is already a high probability that the trade setups that you would be taking could result to high profits. However, when used together and at points wherein the two indicators are somewhat aligned, the probability of getting a profitable trade only gets even higher.


Forex Trading Strategies Installation Instructions

MA Oscillator Trend Forex Trading Strategy is a combination of Metatrader 4 (MT4) indicator(s) and template.

The essence of this forex strategy is to transform the accumulated history data and trading signals.

MA Oscillator Trend Forex Trading Strategy provides an opportunity to detect various peculiarities and patterns in price dynamics which are invisible to the naked eye.

Based on this information, traders can assume further price movement and adjust this strategy accordingly.

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How to install MA Oscillator Trend Forex Trading Strategy?

  • Download MA Oscillator Trend Forex Trading Strategy.zip
  • *Copy mq4 and ex4 files to your Metatrader Directory / experts / indicators /
  • Copy tpl file (Template) to your Metatrader Directory / templates /
  • Start or restart your Metatrader Client
  • Select Chart and Timeframe where you want to test your forex strategy
  • Right click on your trading chart and hover onTemplate
  • Move right to select MA Oscillator Trend Forex Trading Strategy
  • You will see MA Oscillator Trend Forex Trading Strategy is available on your Chart

*Note: Not all forex strategies come with mq4/ex4 files. Some templates are already integrated with the MT4 Indicators from the MetaTrader Platform.

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