OsMA Divergence Indicator for MetaTrader 5 Download – Free – [TFlab]

The OsMA Divergence Indicator is a specialized tool for analyzing divergence structures in financial markets. It focuses on the difference between price movement and the OsMA values to accurately identify both regular and hidden divergences.

By drawing divergence lines on the chart, this indicator highlights potential price reversal zones, helping traders more precisely determine entry and exit points.

OsMA Divergence Indicator Specification Table

The table below summarizes the key features of the OsMA Divergence Oscillator.

Indicator in an Uptrend

In the 4-hour chart of the EUR/AUD currency pair, the indicator identifies a hidden bullish divergence within an existing uptrend, suggesting the continuation of the upward move.

Following this signal, the price moves upward from the divergence zone, confirming the ongoing bullish trend. This type of divergence often appears during short-term corrections and reflects trend reinforcement.

Indicator in a Downtrend

In the 1-hour chart of the EUR/CAD currency pair, the indicator simultaneously detects a regular bearish divergence and a hidden bearish divergence in a key area of the chart.

This convergence of signals presents strong evidence for the start of a downtrend, highlighting the loss of momentum in the prior bullish move.

OsMA Divergence Indicator Settings

The image below displays the internal settings of the OsMA Divergence Indicator:

• OsMAFastPeriod: Period for the fast moving average
• OsMASlowPeriod: Period for the slow moving average
• OsMASignalPeriod: Period for the signal line
• OsMAPrice: Price calculation method for OsMA
• ExtrLeftBars: Number of bars to extend to the left of the chart
• ExtrRightBars: Number of bars to extend to the right of the chart
• PlusSens: Positive sensitivity for trend direction
• MinusSens: Negative sensitivity for opposite direction
• DrawLinesSW: Enable drawing of trend lines on chart
• DrawLinesCHW: Enable drawing of horizontal lines on chart
• Col_Peak_1: Color of first peak (highest point)
• Col_Peak_2: Color of second peak (second-highest point)
• Col_Trough_1: Color of first trough (lowest point)
• Col_Trough_2: Color of second trough (second-lowest point)
• ShortName: Short label for the indicator

Conclusion

The OsMA Divergence Oscillator is a practical tool in technical analysis that combines oscillatory logic with price action behavior to detect hidden and regular divergences with high accuracy.

By leveraging the difference between the MACD line and the signal line (which is the core of OsMA), this indicator exposes momentum inconsistencies at key market levels.