MT4 ebook

Learn to use MetaTrader 4 with our ebook tutorials.

MT4 covers all brokerage and trading activities of Forex and CFD markets.

On the last tip, we saw how to change the chart properties on Metatrader 4. Today, we will focus on how to use the Momentum Forex Indicator, part of the indicators suite of MT4.

The Technical Analysis Indicator for the Forex market, MOMENTUM, meausres the trade price value on a determined lapse.

There are two ways to use the Indicator:

  1. As an oscillator that can give us the direction of a trendline. Long positions should be taken when the indicator is low and turns upwards. Short positions should be taken when it is up and turns downwards.
  2. It can also be used as a lead indicator. When the market reaches maximums, these are identified as a rise on the prices. It works also when minimums are reached and the prices drop.

The parameters are:

Parameters of Momentum Forex Indicator on Metatrader 4

Period: Number of periods used to calcúlate the line. In this case, 9 periods are used.

Apply to: In this case, it is applied to the CLOSE.

Momentum Forex Indicator on Metatrader 4