The Frama OsMa indicator is a trading algorithm based on the interaction of several forex indicators. The indicator's calculations are based on identifying the current trend and its strength, which in turn allows determining the moment of opening a certain position. It is displayed in the lower window of the price chart as a colored histogram with signal level, the current values of which, namely its color and direction, determine information about the current trend, which in turn affects the direction of the current trade.
The choice of currency pair and timeframe when trading using the Frama OsMa indicator does not matter.
The indicator settings include the Input Parameters section, which affects its technical operation, the Colors section, which is responsible for its general visualization, and the Levels section, with the help of which signal levels are added to the indicator window.
-RPeriod - calculation period of the indicator. The default value is 16.
-multiplier - value of the multiplier of the indicator's current calculations. The default value is 4.6.
-signal multiplier - value of the multiplier of the signal line of the indicator. The default value is 2.5.
The Frama OsMa indicator is very easy to use since the algorithm of its use is similar to other histogram indicators. To open a certain trade, one should take into account the strength and direction of the current trend, which in turn is determined by the values of the indicator histogram, namely the direction and color of its columns. If the indicator determines a strong upward trend, buy trades are opened, if the trend is strong downward, sell trades. Moreover, if the current trend changes its direction, it should be considered closing trades.
Signal for Buy trades:
- The histogram of the indicator is located above level 0 and has a color with a growth value. In this case, the current histogram column is formed above the previous one.
Upon receipt of such conditions, a long position may be opened on the signal candle, due to the presence of an upward trend in the market. When the trend direction changes, namely, upon receipt of reverse conditions from the indicator, the current trade should be closed and opening new ones should be considered.
Signal for Sell trades:
- At least three bars of the histogram have a color with a falling value and are directed below level 0. In this case, a new bar of the histogram is formed below the previous one.
A short position can be opened immediately upon receipt of such conditions on a signal candle. At this moment, the market determines the presence of a downward trend. If it changes, namely, when the direction and color of the histogram change, the trade should be closed.
The Frama OsMa indicator is an accurate algorithm, the calculations of which are based on the functioning of effective forex indicators. The indicator is very easy to use and suitable even for beginners. Prior practice on a demo account is recommended before using the indicator.