Medical Book

Buy Textbooks | Autoclaves | stethoscopes | Buy Books Online | Buy Medical Textbooks | Textbooks | Equipment | Nutrition | USMLE | MRCP | MRCS | Dental | Sport Medicine | Cardiology | Medical Textbook | Surgery | Pregnancy | Anatomy | Radiation | Pedia |
 
HomeCalendarFAQSearchMemberlistUsergroupsRegisterLog in

Share | 
 

 How To Use Momentum Indicator

View previous topic View next topic Go down 
AuthorMessage
painofhell



Male Posts : 668
Birthday : 1990-05-18
Join date : 2014-08-16
Age : 26
Job/hobbies : forex

PostSubject: How To Use Momentum Indicator   Mon Jan 26, 2015 9:56 am

Join STARZ Free Trial NOW !!

Read More by Click The Banner Below

Momentum Indicator Definition
Momentum Oscillator is an indicator that shows trend direction and measures how quickly the price is changing by comparing current and past prices.

How to Use Momentum Indicator In Trading
The indicator is represented by a line, which oscillates around 100. Being an oscillator, momentum should be used within price trend analysis.

Crossing the x-axis:

It is believed that if the indicator climbs above 100 during an uptrend, it is a bullish signal;
Otherwise if the indicator falls below 100 during a downtrend, a bearish signal appears.

Falling out of its normal range:

Extreme points mean that the price has posted its strongest gain or loss for a particular number of moving periods, supporting trend strength;
At the same time if the price movement was too rapid, they may indicate possible overbought and oversold areas.

Divergence patterns:

If the price hits a new high, but the indicator does not, that could mean that investor sentiment is actually lower;
And on the contrary if the price falls to a new low, but the indicator does not support the drop, it is a signal that the trend may end soon.

Momentum Indicator Formula (Calculation)
Momentum = (Current close price / Lagged close price) x 100

How to Install Momentum Indicator in MT4 Charts
Momuntum indicator is standard Metatrader indicators, to put this indicator in your chart, please click Insert >> Indicators >> Oscillator >> Momentum . The default setting momentum indicator is a period of 14 and apply to Close.

Share
Back to top Go down
View user profile
 

How To Use Momentum Indicator

View previous topic View next topic Back to top 
Page 1 of 1

Permissions in this forum:You cannot reply to topics in this forum
Medical Book :: Forex :: Forex Education and Learning-