The TrendStrength oma signals indicator is a very easy to use indicator. Although it is a channel indicator, the indicator gives precise signals that don’t require a lot of evaluation in order to place an order. The indicator is displayed on a different chart once it is loaded and inserted into the MT4. It therefore leaves the trading chart clean so that the trader can watch the market with a lot of ease.
The algorithm of this indicator is based on the average of nine moving averages. However it is not necessary to understand the calculations behind the operations of the indicator since they are of no importance in your trading. The only important thing to know is how to interpret the signals given by the indicator and the various objects that are displayed by the indicator.
It gives its signals according to the prevailing trend at that particular time. However, it doesn’t mean that the indicator gives the signals after a defined period has elapsed. The indicator gives the signal when there is a distinct trend in the market prices that is worth trading. It is one of the few indicators that detect the market trend at the beginning of the trend; most trend indicators wait for the trend to form and then give the signal. Therefore, if this indicator is correctly used, it can lead to a profit of around 300 pips per day.
Fig.1. The TrendStrength oma signals indicator loaded on the MT4 chart.
From the chart above, it is evident thaty the indicator is displayed below the main trading chart. The indicator has three channel lines. The top line is red, the scond from the top is usally yellow by defult and the bottom line is usually green in color. There is also a silver dotted line that is positioned at the center of the oma channel. This silver dotted line is the center of gravity of the channel indictor.
Once the time is ripe for a trade, the indicator will display an arrow on the main trading chart. The arrow may be blue or purple. The blue arrow is displayed facing upwards and it shows that there is a dominant up trend. The purple arrow is displayed facing down and it shows that there is a dominant down trend in the market prices.
Placing trades using the TrendStrength oma signals indicator.
Using this indicator to trade is very simple. It only requires patience for an arrow to appear and then you place a trade according to the arrow signal that is given. If it is a blue arrow that is displayed, the trader should place a BUY order at the beginning of the next candle. If the arrow that is displayed is purple, then the trader should place a sell order at the beginning of the next candle.
For every trade that the trader opens, it is good to use a take profit. The take profit should be preferably set at 10pips away from the entry level. With this indicator, it is not necessary to use a stop loss as long as you have set you take profit at an easily achievable level.
Example of how to place the trades.
Download Free Forex TrendStrength Oma Signals Indicator