Let's imagine you one indicator, which would be very good and had the great popularity and a fairly high efficiency. This indicator is the truth. Now, let's assume you try, whether it is possible, to ensure that, this indicator had term improvement. That is, could be to increase its efficiency and optimize under any environment in the market. Is this possible? Theanswerisyes. Indicator osma is one of the such. This tool is not that other, as well as derived graphical tool to analyze price situation in the market. Let's take a look at him closer.
Of course, as soon as it is clear that this is in the light and that it is based. Correctly. Indicator osma this is derivative MACD indicator and is it the same effectively. Let's take a look at it in more detail in the graph. The first, that it should be noted that this is the fact that this tool is well shows the "bottom" price movement and pair. That is the principle of the toe-in is the price differences.
In addition to this, the signals would remain the same, and that the MACD. When you see the top bar graph indicator and the recession, it is said, that the direction of movement is changing. It should be the place of opening a warrant. Another such signal to torque, is crossing zero line. This is particularly well is triggered after divergence.
But, as you probably already noticed, indicator osma does not have a line. This is because it takes into account in the following algorithm, which formed the basis of this indicator. Let's take a look, as is the difference between the two indicators.
As can be seen in the image, there is a similarity. But! If you view dynamic analysis two leds, it can be said that indicator osma operates much earlier and shows a more "bright" situation. RSI is displayed more prominently and green square was noted two signal upper indicator against one on the lower indicator MACD.
Is that because all the case in the algorithm osma. The bar graph is the difference between bar chart and MACD signal line. That is, when all manifestations led indicators, the bar graph osma is more sensitive to the price dynamics. But it should be pointed out and the disadvantage of this indicator. The advantage is, and the same drawback. As well, it is that signal, manifested before, it may be simply false. This leads, of course, to the losses. Therefore, indicator osma we would recommend to apply in a pair with another indicator. For example, as shown above, it can give excellent results in the work with a simple MA. It is also borne in mind that it is necessary to use all the signals indicator, it is not necessary to selectively tear off position, if the indicator gives the signal to proceed, otherwise you can lose profits.