TMA + OSMA Scalping System

The TMA + OSMA Scalping System indicator is a comprehensive trend-following tool that combines Triangular Moving Average (TMA) bands, the Oscillator of Moving Average (OSMA), and a dedicated Moving Average (MA) Zone to identify high-probability scalping opportunities. It streamlines technical analysis by looking for price interaction with volatility bands followed by momentum alignment to generate entry signals.

Usage

The tool is designed for short-term trading and scalping. A trade setup typically involves three distinct steps:

• Band Interaction: The script tracks when the price has recently touched or breached the upper or lower TMA bands. A touch of the lower band sets a bullish bias, while a touch of the upper band sets a bearish bias.
• Trend Confirmation: The price must cross through the "MA Zone" (defined by a central EMA or VWMA with a specific vertical offset). A cross above the zone confirms bullish momentum, while a cross below confirms bearish momentum.
• Momentum Alignment: The OSMA (histogram) must be aligned with the trade direction (positive for longs, negative for shorts).

Signals are plotted as circles on the chart. A common exit strategy or take-profit target for these signals is the opposite TMA band.

Details

The system utilizes three core components:

1. TMA Bands: These are calculated using a double-smoothed moving average filtered by the Average True Range (ATR). This creates a smoother volatility envelope compared to standard Bollinger Bands.
2. OSMA: This oscillator measures the distance between the MACD line and its signal line, providing a sensitive gauge of momentum changes.
3. MA Zone: Users can choose between an EMA or VWMA. This zone acts as a dynamic filter, ensuring that entries are only taken when price shows sufficient strength to break away from the mean.

Settings

TMA & ATR

• TMA number of bars back: Sets the lookback period for the Triangular Moving Average smoothing.
• ATR number of bars back: Determines the period used for volatility calculation within the bands.
• ATR Multiplier: Adjusts the width of the TMA bands.
• Source: The price data used for calculations (default is Close).

OSMA

• OSMA Fast Length: The period for the fast EMA in the MACD calculation.
• OSMA Slow Length: The period for the slow EMA in the MACD calculation.
• OSMA Signal Smoothing: The lookback for the signal line EMA.
• OSMA Display: Choose to highlight OSMA alignment via bar colors, background colors, or none.

MA Zone

• MA Type: Select between EMA or VWMA for the central zone.
• MA Length: The period of the central moving average.
• MA Vertical Offset: The distance from the MA to create the upper and lower zone boundaries.

FAQ

How do I interpret the signals?

A green circle indicates a bullish entry when the price has recently touched the lower band, crossed above the MA zone, and OSMA is positive. A red circle indicates a bearish entry when the price has recently touched the upper band, crossed below the MA zone, and OSMA is negative.

Can I use this for long-term trading?

While designed as a scalping system for lower timeframes, the logic can be applied to any timeframe by adjusting the periods and multipliers in the settings.

How do I access the TMA + OSMA Scalping System?

You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.