The Momentum MT4 forex indicator is often used in forex strategies and systems.
It basically measures and displays the amount of price change over a given time span.
Momentum can be used as a trend-following indicator or as a leading indicator.
This indicator can be used for scalping, day trading, swing trading and position trading on any currency pair.
The CAD/JPY H1 chart below shows the Momentum forex indicator in action.
Basic Trading Signals
Momentum trading signals are simple to interpret and goes a follows:
Buy Trade: Go long when the indicator makes a bottom and turns back up.
Sell Trade: Go short when the indicator makes a top and turns back down.
Tip: Add a longer-term moving average to the trading chart and trade in the overall direction of the trend indicated by the longer-term moving average.
Trend up? Only trade Momentum buy trade signals
Trend down? Only trade Momentum sell trade signals
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: chart pattern indicator
Customization options: Variable (Momentum Period) 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 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)