Momentum – indicator for MetaTrader 4

0
14115

The Momentum Technical Indicator measures the amount that a security’s price has changed over a given time span. There are basically two ways to use the Momentum indicator:

  • You can use the Momentum indicator as a trend-following oscillator similar to the Moving Average Convergence/Divergence (MACD). Buy when the indicator bottoms and turns up and sell when the indicator peaks and turns down. You may want to plot a short-term moving average of the indicator to determine when it is bottoming or peaking.

    If the Momentum indicator reaches extremely high or low values (relative to its historical values), you should assume a continuation of the current trend. For example, if the Momentum indicator reaches extremely high values and then turns down, you should assume prices will probably go still higher. In either case, only trade after prices confirm the signal generated by the indicator (e.g., if prices peak and turn down, wait for prices to begin to fall before selling).

  • You can also use the Momentum indicator as a leading indicator. This method assumes that market tops are typically identified by a rapid price increase (when everyone expects prices to go higher) and that market bottoms typically end with rapid price declines (when everyone wants to get out). This is often the case, but it is also a broad generalization.

As a market peaks, the Momentum indicator will climb sharply and then fall off — diverging from the continued upward or sideways movement of the price. Similarly, at a market bottom, Momentum will drop sharply and then begin to climb well ahead of prices. Both of these situations result in divergences between the indicator and prices.

Calculation

Momentum is calculated as a ratio of today’s price to the price several (N) periods ago.

MOMENTUM = CLOSE(i)/CLOSE(i-N)*100

where:

  • CLOSE(i) — is the closing price of the current bar;
  • CLOSE(i-N) — is the closing bar price N periods ago.

MT4 Indicators – Download Instructions

Momentum – indicator for MetaTrader 4 is a Metatrader 4 (MT4) indicator and the essence of this technical indicator is to transform the accumulated history data.

Momentum – indicator for MetaTrader 4 provides for an opportunity to detect various peculiarities and patterns in price dynamics which are invisible to the naked eye.

Based on this information, traders can assume further price movement and adjust their strategy accordingly. Click here for MT4 Strategies

Recommended Forex Metatrader 5 Trading Platform

  • Free $30 To Start Trading Instantly
  • Deposit Bonus up to $5,000
  • Unlimited Loyalty Program
  • Awards Winning Trading Broker

xm account

Click Here for Step By Step XM Trading Account Opening Guide

How to install Momentum – indicator for MetaTrader 4.mq4?

  • Download Momentum – indicator for MetaTrader 4.mq4
  • Copy Momentum – indicator for MetaTrader 4.mq4 to your Metatrader Directory / experts / indicators /
  • Start or restart your Metatrader 4 Client
  • Select Chart and Timeframe where you want to test your MT4 indicators
  • Search “Custom Indicators” in your Navigator mostly left in your Metatrader 4 Client
  • Right click on Momentum – indicator for MetaTrader 4.mq4
  • Attach to a chart
  • Modify settings or press ok
  • Indicator Momentum – indicator for MetaTrader 4.mq4 is available on your Chart

How to remove Momentum – indicator for MetaTrader 4.mq4 from your Metatrader Chart?

  • Select the Chart where is the Indicator running in your Metatrader 4 Client
  • Right click into the Chart
  • “Indicators list”
  • Select the Indicator and delete

Momentum – indicator for MetaTrader 4 (Free Download)

Click here below to download:



Download Now

LEAVE A REPLY

Please enter your comment!
Please enter your name here