In order to gauge the amount that a currency pair’s price has changed over a specified period of time, traders use the Momentum of Average Signals MT5 indicator.
There are essentially two ways traders can deploy this forex indicator:
One is to use it as a trend-following oscillator, in a similar manner as the Moving Average Convergence/Divergence (MACD).
By this we mean, when the undotted line of the indicator bottoms and turns up we buy, and when it peaks and dips down we sell.
The Momentum of average MT5 forex indicator can also be used as a leading indicator, considering a broad assumption in which trading divergences between the indicator and prices holds sway.
It is assumed that when the Momentum of Average Signals MT5 indicator spikes and then falls off during market peak, it foretells a possible bearish trend ahead of price and the same can be inferred when the indicator declines sharply.
The EUR/USD H1 chart below displays the Momentum of Average Signals Metatrader 5 forex indicator in action.
Basic Trading Signals
Buy Signal: Go long when the ascending undotted line of the Momentum of Average Signals indicator turns deep sky blue.
Sell Signal: Go short when the descending undotted line of the Momentum of Average Signals indicator turns light salmon.
Exit buy trade: Close all buy orders if while a bullish trend is ongoing, the undotted deep sky blue line of the indicator changes to dark gray.
Exit sell trade: Close all sell orders if while a bearish trend is running, the undotted light salmon line of the indicator changes to dark gray.
Tips: The Momentum of Average Signals Metatrader 5 forex indicator is a leading indicator that allows day traders and scalpers gauge trends in a timely fashion.
MT5 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 5
Type: chart window indicator
Customization options: Variable [Momentum period, Average period (<=1 for no average), Average method, Price, Levels period, Color change type], Colors, width & Style.
Time frames: 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month
Type: trend | oscillator
Copy and paste the Momentum of average (dlvl).ex5 indicator into the MQL5 indicators folder of the Metatrader 5 trading platform.
You can access this folder from the top menu as follows:
File > Open Data Folder > MQL5 > Indicators (paste here)