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

Step 1: Open Navigator Window on Software

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

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

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 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 Momentum chart indicator from this list of indicators so as to add the Momentum indicator on the chart.

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 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 window to MT4 and how to add Momentum custom indicator in MT4 - How to add a custom Momentum indicator in MT4.

About Momentum Indicator Tutorial Explained

Momentum Analysis and Momentum Oscillator 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.

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 Trade Signals:

• A buy signal gets generated when Momentum crosses above zero
• A sell signal gets generated when Momentum crosses below zero

Overbought/Oversold Levels:

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

• Readings above the overbought level mean the currency pair is overbought & 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 indicator connecting the peaks and troughs. Momentum begins to turn before price hence making it a leading indicator.

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

Analysis in Forex Trading