![]() ![]() The Momentum Indicator is calculated as follows: The first step is to choose a value for N, whose default value in both MT4 and MT5 is 14, however, you can set it to whatever value you wish. The Momentum Forex Indicator makes a comparison between the current price and the price N periods previously, where N is a number which is chosen by the trader. However, seeing how it is calculated provides us with a better understanding of how the indicator works. The Momentum Indicator formula is actually quite straightforward, nevertheless, you won’t need to worry about doing the calculations yourself, as both MT4 and MT5 will take care of that for you. Now that we know what momentum indicators are, let’s take a look at how the Momentum Indicator calculation is made. In this article, it is the last of these three which we will be focussing on. Momentum can be a useful tool in determining the strength, or weakness, of an asset’s price movements.Īmongst the most well-known and best momentum indicators are the Relative Strength Index (RSI), the Moving Average Convergence Divergence (MACD) and the Momentum Indicator found in MT4 and MT5. Momentum indicators are technical indicators which depict the momentum behind an asset’s price, by measuring the rate of its rise or fall. Final Thoughts What Are Momentum Indicators?. ![]() How to Use the Momentum Indicator MT4 & MT5. ![]()
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