Indicator Momentum - Page 2
Page 2 of 3 FirstFirst 123 LastLast
Results 11 to 20 of 23

Thread: Indicator Momentum

  1. #1
    Trader
    Join Date
    Aug 2013
    Posts
    12,758
    Thumbs Up
    Received: 94
    Given: 1

    Indicator Momentum

    Momentum is used as an indicator to know the trend of the market. If it is going up, it can be read as bullish sign and vice-versa. It is also usually called as ROC (Rate of Change).
    Momentum is calculated within specific time period (n). The formula is current closing price divided by last (n) closing price times by 100. Usually, the default n is 14. In meta trader 4, the reference value for indicator was 100. So if the momentum indicator going up from 100, the trend is going bullish. While, if it is going down from 100, the trend is going bearish.
    Momentum indicator has 2 functions. The first one was to know the trend of the market and the second one was to indicate whether the trend will keep going or not.



    I will show the first function first. As you can see from the picture, there are 2 boxes which I highlighted. Red box indicated bearish sign since it is going down from 100, while the yellow one showed bullish sign since it is going from 100.



    For the second function, we need the help of moving average indicator which is pointed by the blue arrow. This Moving average is needed to differentiate false signal or not. It is usually used with period of 20. So, it is calculate the average value of the closing prices within 20 days since I use closing prices for easier explanations.
    As we can see, I use yellow and red box to explain how it works. When you see the yellow box, the momentum indicator value was at its lowest. In this case, we won’t trade in this particular situation since the moving average also still showed bearish sign so it’s not a good time to buy low and sell high. So, never try to trade when indicator momentum reach its highest or lowest position
    For the red box, it explained the best position to buy low and sell high. The indicator momentum is not at its lowest value and the moving average showed a sign of bullish. This will be a perfect opportunity to buy and sell high later. As long as the Moving average indicator going bullish and momentum indicator is above 100, it’s safe to wait for higher price to take profit.
    I recommended using this momentum indicator since it is easy to use with the help of moving average. It’s a good choice for beginner trader who want to learn how to become a technical trader. It still need experiences and time to get a good position whether it is buy or sell even though the momentum and moving average indicator were in a synchronized trend since market is volatile.

    Not allowed!
    Last edited by sekiryutei; 05-13-2015 at 03:57 PM.

  2. #11
    Banned
    Join Date
    Jul 2016
    Posts
    1,963
    Thumbs Up
    Received: 8
    Given: 0
    Momentum is really the right for us to work for the greatest of what we do we have to really deffend ourself with the right principles that put together the right processes we know how to be sure that we develop the same issues we understand the choice of work

    Not allowed!

  3. #12
    Trader
    Join Date
    Aug 2016
    Posts
    377
    Thumbs Up
    Received: 2
    Given: 0
    There are many different types of individuals indicators that you can use to show a moment of a certain pairs but you have to know that when you have that one that is clear in showing the Clear bounce of the the pairs is a good way that you can follow the best and the simplest one I have seen is when traders draw trend lines all by themselves

    Not allowed!

  4. #13
    Banned
    Join Date
    Jul 2016
    Posts
    1,963
    Thumbs Up
    Received: 8
    Given: 0
    A momentum is really important for us to really form the right indicators that really show how good we are we have to run the right shown market for the same intervals we have to be sure that we are better shall be sure that we have to make a good analysis that a certain point time is really making it better for the right shown points its a good chances

    Not allowed!

  5. #14
    Trader
    Join Date
    Aug 2013
    Posts
    11,572
    Thumbs Up
    Received: 70
    Given: 48
    momentum is a good indicator and the trader can trade with as a part from strategy or used as a confirmation indicator for choosing the proper positions of trading, it can be used with the other indicators and can be used as alone, but it is not preferred to be used alone as all indicators are lagging and follow the price always.

    Not allowed!

  6. #15
    Trader YoyO_o's Avatar
    Join Date
    Sep 2016
    Posts
    2,768
    Thumbs Up
    Received: 3
    Given: 4
    not many can achieve profit through that indicator and I think that so much of those who start working out in my losing the outset , the order to be successful forex trading, do not over trade with small capital with your own money management and trading plan

    Not allowed!

  7. #16
    Trader
    Join Date
    Aug 2013
    Posts
    11,572
    Thumbs Up
    Received: 70
    Given: 48
    momentum is a good indicator and it is used with any strategy and the traders that use it always say it is a good indicator, i did not trade with it and i do not be able to understand its nature well, so i trade with another indicators, if this is indicator is used with another indicators or added to another strategy it will work well with them.

    Not allowed!

  8. #17
    Trader ara's Avatar
    Join Date
    Dec 2013
    Posts
    1,834
    Thumbs Up
    Received: 106
    Given: 184
    Quote Originally Posted by sekiryutei View Post
    I will show the first function first. As you can see from the picture, there are 2 boxes which I highlighted. Red box indicated bearish sign since it is going down from 100, while the yellow one showed bullish sign since it is going from 100.
    Which picture? I don't see any pictures on this thread.

    I take my own picture based on your trading strategy, with the combination of Momentum indicator and Moving Average 20 indicator, I see this strategy has a good probability, I checked the past market data.

    2018-06-01_171724.jpg

    Unfortunately the pictures that you attached here was missing, so we can understand fully about this strategy.

    Not allowed!

  9. #18
    Trader
    Join Date
    Aug 2013
    Posts
    11,572
    Thumbs Up
    Received: 70
    Given: 48
    indicator momentum is good for the trader that understand it and knows how to work with it and so he will get good results with it and it will be a good confirmation to his trading decisions, the trader needs to know how it works to be able to use it properly as this will make a difference and will let the trader to improve his trading and increase his profits.

    Not allowed!

  10. #19
    Banned
    Join Date
    Jun 2018
    Posts
    222
    Thumbs Up
    Received: 3
    Given: 1
    Force based pointers are practically uncommon thing in the market or forex advertise yet in securities exchange they are utilized regularly. indeed force based markers are great in the event that you can utilize them the correct way. It can't disclose to you the business sectors bearing specifically however will assist you with figuring things out.

    Not allowed!

  11. #20
    Trader snnaky's Avatar
    Join Date
    Apr 2014
    Posts
    879
    Thumbs Up
    Received: 7
    Given: 1
    [lang=ar]i knew a lot of about this indicator and it said that it is one of the best indicators, but Success is not based on indicator but success is understanding the type of trading and using the indicator in a perfect time[/lang]
    because most indicators follow the price and this makes you follow the price also and you buy

    Not allowed!

Page 2 of 3 FirstFirst 123 LastLast

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •