How to Add Inertia Indicator on MetaTrader 4 Charts - Adding MT4 Inertia Forex Chart Indicator
Step 1: Open Navigator Window Panel on Forex Trading Platform
Open Navigator window as shown & illustrated below: Go to "View" menu (click on it), then select "Navigator" window (click), or From Standard Tool Bar click the "Navigator" button or press keyboard short cut keys "Ctrl+N"
On Navigator window, select 'Technical Indicators', (DoubleClick)
How to Add Inertia Indicator on MetaTrader 4 - MT4 Inertia Technical Indicator
Step 2: Expand the Indicators Menu on the Navigator - Adding Inertia MT4 Chart Indicator
Expand the menu by clicking the expand button marker (+) or double click the "indicators" menu, after this the button will appear as (-) and will now display a list as shown below - select the Inertia forex chart indicator from this list of forex indicators so as to add the Inertia indicator on the forex chart.
How to Add Inertia Indicator - From the Above window you can then place Inertia indicator that you want on the Forex chart
How to Add Custom Inertia Indicator to MT4
If the technical indicator you want to add is a custom indicator - for example if the Inertia technical indicator you want to add is a custom indicator you will need to first add this custom Inertia indicator on the MetaTrader 4 platform & then compile custom Inertia indicator so that the newly added Inertia custom indicator pops up on the list of custom indicators in MetaTrader 4 software.
To learn how to install Inertia indicators on MT4, how to add Inertia indicator window to MT4 and how to add Inertia custom indicator in MT4 - How to add a custom Inertia indicator on MetaTrader 4.
About Inertia Technical Indicator Described
Inertia Technical Analysis & Inertia Signals
Developed by Donald Dorsey & was originally used to trade Stocks & Commodities market, before forex traders took it & started trading the forex market using this indicator.
Dorsey chose to name it "Inertia" because of his interpretation of the market trend. He claimed that a forex market trend is the overall result of inertia and thus it takes more momentum for a trending market to reverse its direction than to continue moving in the same direction. Therefore, a Forex trend is the measurement of market inertia. This is an oscillator that uses the scale of zero to a hundred. Signals are generated using the 50 level center line crossover method.
In physics, the term Inertia is defined in terms of mass and direction of motion. Using the standard technical analysis, the direction of motion of the trend can be easily defined. However, the mass can't be easily defined. Dorsey claimed that the volatility of a financial instrument might be the simplest and the most accurate measurement of inertia. This theory led to the use of the Relative Volatility Index (RVI) as the basis to be used as a trend technical indicator. Therefore Inertia indicator is comprised of: RVI smoothed by a linear regression.
Forex Technical Analysis & How to Generate Signals
When it comes to trading the currency market using this indicator, the signals generated are fairly simple to interpret. Below are 2 examples illustrated using forex charts showing how buy and sell signals are generated using Inertia.
Upward FX Trading Trend - Bullish Buy Forex Signal
If the Inertia is above 50, positive inertia is indicated, this therefore defines the long-term Forex trend as upward as long as the indicator remains above 50. When it crosses to levels below 50 then this is interpreted as an exit signal. The chart below shows an example of how a buy signal is generated.
Upwards Trend - Bullish Signal
Downwards FX Trading Trend - Bearish Sell Forex Signal
If the Inertia is below 50, negative inertia is indicated, this therefore defines the long-term forex trend as downwards as long as the indicator remains below 50. If it goes above 50 then this is interpreted as an exit signal. The currency chart below shows how a sell signal generated.
Downwards Trend - Bearish Signal
