How to Add Momentum Indicator on MT4 Charts - Adding MT4 Momentum Chart Indicator

Step 1: Open Navigator Window on Trading Platform

Open Navigator panel as shown & displayed below: Go to 'View' menu (click on it), then choose 'Navigator' window panel (click), or From Standard Tool-Bar click 'Navigator' button or press key-board short cut keys 'Ctrl+N'

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

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

How to Add Momentum Indicator on MT4 - MT4 Momentum Indicator

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

Expand menu by clicking 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 Momentum chart indicator from this list of trading indicators so as to add the Momentum indicator to the chart.

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

How to Add Momentum Indicator - From the Above window you can then place Momentum indicator that you want on the chart

How to Add Custom Momentum Indicator to MetaTrader 4 Platform

If the technical indicator you as a trader want to add is a custom indicator - for example if the Momentum indicator you want to add is a custom indicator you will need to first add this custom Momentum indicator on the MT4 platform & then compile custom Momentum indicator so that the newly added Momentum custom indicator pops up on the list of custom indicators in MT4.

To learn how to install Momentum indicators on MT4, how to add Momentum indicator panel to MT4 and how to add Momentum custom trading indicator in MT4 - How to add a custom Momentum indicator in MT4.

About Momentum Indicator Tutorial Explained

Momentum Analysis and Momentum Oscillator Trading Indicator Trading Indicator Signals

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

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

Forex Analysis & How to Generate Signals

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

Zero Center-Line Crossovers Signals:

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

Over-bought/Oversold Levels:

Momentum is used as an overbought/oversold indicator, to identify 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 & oversold levels.

Readings above the overbought level mean the 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 the peaks and troughs. Momentum begins to turn before price hence making it a leading trading indicator.

Bullish reversal - Momentum readings breaking above a downwards trendline 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 Indicator - How Do You Use Momentum Technical Indicator? - How Do I Add Momentum Indicator in MT4 Charts?

Analysis in Forex Trading

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