The DSS Momentum MT4 forex indicator is based on Stochastic and moving averages.
The DDS indicator fluctuates between 0 and 100 readings.
A reading around 0 is considered to be oversold while a reading around 100 is considered to be overbought.
The indicator draws green and orange oscillator lines.
A green oscillator line is said to be bullish and traders look to open a buy trade.
An orange oscillator line is said to be bearish and traders look to open a sell trade.
It is highly recommended to use the DSS Momentum forex indicator together with a trend following technical indicator (EMA, SMA, ADMI, Bollinger Bands,…) and only take trades in the direction of the prevailing trend.
Price in an up trend? Only trade the green lines and ignore the orange lines.
Price in an down trend? Only trade the orange lines and ignore the green lines.
The EUR/USD H1 chart below displays the DSS Momentum forex indicator in action.
Basic Trading Signals
Signals from the DSS Momentum forex indicator are easy to interpret and goes as follows:
Buy Signal: Go long when the DSS Momentum MT4 indicator draws a green line near the 0 level.
Sell Signal: Go short when the DSS Momentum MT4 indicator draws an orange line near the 100 level.
Trade Exit: Close the open trade when an opposite signal occurs, or use your own method of trade exit.
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: chart pattern
Customization options: Variable (StochasticLength, SmoothMA, SmoothMAMethod, SignalMA, SignalMAMethod, ShowArrows) Colors, width & Style.
Time frames: 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month
Copy and paste the dss-averages-of-momentum.mq4 indicator into the MQL4 indicators folder of the Metatrader 4 trading platform.
You can access this folder from the top menu as follows:
File > Open Data Folder > MQL4 > Indicators (paste here)