OsMA Divergence Indicator Download for MetaTrader 4 – Free – [TFlab] – MT4/MT5 Resources

The OsMA Divergence Indicator automatically detects bullish and bearish divergences between price action and the OSMA oscillator and visualizes them graphically on the chart.

These divergences occur when price makes a new high or low, but the indicator does not confirm the move, which often signals a potential trend reversal.

OsMA Divergence Indicator Specification Table

The following table summarizes the main characteristics of the OsMA divergence oscillator.

Indicators at a glance

OsMA Divergence Oscillator compares price movements with the values ​​of the OsMA indicator to detect regular divergences in both automatically and displays them clearly on the chart using colored lines.

These divergences often occur in sensitive market areas and can provide reliable signals of potential trend reversals.

Indicators are in an upward trend

On the 1-hour chart of the CAD/CHF currency pair, this indicator detects a hidden bullish divergence, signaling the beginning of an uptrend.

This signal is represented by a green line displayed on both the oscillator and price charts, indicating a possible reversal to the upside.

Indicators are in a downward trend

The image below shows the gold price chart on the 1 hour time frame. This indicator identifies regular bearish divergences between price and the OsMA oscillator and displays a pink line, indicating a possible continuation of the trend or the beginning of a new downtrend.

OsMA Divergence Indicator Settings

The adjustable parameters of OsMA Divergence Oscillator are shown in the figure below:

• OsMAFast Period : The period of the fast moving average
• OsMASlow Period : The period of the slow moving average
• OsMASignal Period : The period of the signal line
• OsMA Price : OsMA price calculation method
• ExtrLeft Bars : The number of bars extending to the left side of the chart
• ExtrRight Bars : The number of bars extending to the right side of the chart
• Plus Sens : Positive sensitivity to trend direction
• Minus Sens : Negative sensitivity in the opposite direction
• DrawLinesSW : Enables drawing trend lines on the chart
• DrawLinesCHW : Enables drawing horizontal lines on the chart
• Col_Peak_1 : Color of the first peak (highest point)
• Col_Peak_2 : Color of the second peak (second highest point)
• Col_Trough_1 : Color of the first trough (lowest point)
• Col_Trough_2 : Color of the second trough (second lowest point)
• Short Name : short label for the indicator

Conclusion

The OsMA Divergence Indicator is a powerful analytical tool used to detect divergences and potential reversal points in financial markets.

Since signals are not redrawn after being formed, combining this indicator with key technical levels, candlestick patterns, and trend analysis can significantly enhance trading strategies .