How to Set Momentum on MetaTrader 4 Charts - Adding MT4 Momentum Chart Indicator

Step 1: Open the Navigator Window on Trading Platform

Open Navigator panel like is shown & displayed below: Go to 'View' menu (click on it), then select 'Navigator' panel window (click), or From Standard ToolBar click 'Navigator' button or press key board short cut keys 'Ctrl+N'

On Navigator panel, choose 'Indicators', (DoubleClick)

How Do I Add Momentum in MetaTrader 4 Software? - MT4 Momentum - How Do You Use Momentum in Forex Trading?

How to Set Momentum in the MT4 - MetaTrader 4 Momentum Indicator

Step 2: Expand the Indicators Menu on the Navigator - Adding Momentum MT4 Chart Indicator

Expand the menu by clicking the protract button tool marker feature ( + ) or double-click the 'indicators' menu, after that this particular specified button will appear and be shown as (-) & will now display a list just as shown below - choose the Momentum chart indicator from this list of trading indicators so as to add the Momentum to the chart.

How Do I Add Momentum on a Chart? - How to Use Momentum Indicator

How to Set Momentum - From the Above window you as a trader can then place Momentum that you want on the chart

How to Set Custom Momentum to MT4 Software Platform

If the indicator you want to add is a custom technical indicator - for example if the Momentum you want to add is a custom indicator you'll need to first add this custom Momentum on the MT4 software & then compile the custom Momentum so that as the newly added Momentum custom indicator pops up on the list of custom technical indicators in MetaTrader 4 Platform Software.

To learn how to install Momentum indicators in the MT4, how to add Momentum panel to MT4 and how to add Momentum custom indicator in MetaTrader 4 Platform - How to add a custom Momentum on the MT4 Software.

About Momentum Tutorial Explained

Momentum Analysis and Momentum Oscillator Indicator Signals

The momentum indicator uses math equations to calculate line of drawing. Momentum gauges the velocity with which price changes. This is calculated as the difference between the ruling price candle & the average/mean price of a chosen and selected number of price bars ago.

Momentum represents the rate of change of the currency’s price over the particular time periods. The faster that the prices rises, the larger the increase in momentum. The faster that the prices decline, the larger and greater the decrease in momentum.

As the price movement starts to slowdown the momentum will also slowdown and return to a median level.

How Do You Use Momentum Indicator?

Momentum

FX Analysis and How to Generate Trading Signals

This indicator is used to generate technical buy and sell signals. The 3 most common methods of generating signals used in Forex are:

Zero Center-Line Crossovers Signals:

A buy trade signal gets derived/generated when the Momentum crosses above zero level
A sell trade signal gets generated/derived when the Momentum crosses below zero mark

Over-bought/Oversold Levels:

Momentum is used as an overbought/oversold indicator, to identify the potential overbought & over-sold levels based on previous readings: the previous high or low of the momentum is used to figure out the over-bought and oversold levels.

Readings above the overbought level mean the forex currency pair is over-bought & a price correction is pending
While readings below the oversold level the currency is oversold and a price rally is pending.

FX Trend Line Break Outs:

Trend-Lines can be drawn on the Momentum trading indicator connecting these peaks & troughs. Momentum begins to turn before price hence making it a leading indicator.

Bullish reversal - Momentum readings breaking above a downwards trend line warns of a possible bullish reversal setup while
Bearish reversal - momentum readings breaking below an upwards trendline warns of a possible bearish reversal signal.

Momentum - How Do You Use Momentum Trading Indicator? - How Do You Add Momentum in MT4 Charts?

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