Adding MetaTrader 4 Momentum Indices Technical Chart Indicator
Step 1: Open the Indices Trading Platform Navigator Window
Open the Navigator window as shown below; Go to “View” menu (click), then select the “Navigator” window (click), or From Standard Toolbar click the “Navigator” button or press short cut keyboard keys “Ctrl+N”
On the Navigator window, select “Indicators”, (Double Click)
How to Add Momentum Stock Indexes Indicator on MT4 - MetaTrader 4 Momentum Indices Indicator
Adding Momentum MetaTrader 4 Indices Technical 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 stock indices chart indicator from this list of stock indices indicators so as to add the Momentum stock indexes technical indicator on the stock indexes trading chart.
From the Above window you can then place Momentum indicator that you want on the Indices Trading chart
How to Put Custom Momentum Stock Indexes Indicator on MetaTrader 4 and How to Install Momentum Stock Indexes Indicator MetaTrader 4
If the stock indices 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 stock indexes trading platform and the compile the custom Momentum indicator so that the newly added Momentum custom indicator appear on the list of custom indicators on the MetaTrader 4 stock indexes trading platform.
To learn how to install Momentum indicators on MetaTrader 4, how to add Momentum indicator window to MetaTrader 4 and how to add Momentum custom indicator on MT4 stock indexes trading platform - How to add a custom Momentum indices trading Indicator on MT4.
About Momentum Indices Indicator Tutorial
Momentum Indices Technical Analysis and Momentum Oscillator Indices Trading Signals
The momentum indicator uses equations to calculate the line of plotting. Momentum measures the velocity with which stock indexes price changes. This is calculated as the difference between the current stock indexes price candlestick and the average stock indexes price of a selected number of stock indexes price bars ago.
Momentum represents the rate of change of the stock indexes price over those specified time periods. The faster that indices prices rises, the bigger the increase in momentum. The faster that indices prices decline, the bigger the decrease in momentum.
As the stock indexes price movement starts to slowdown the momentum will also slowdown and return to a median level.
Indices Technical Analysis and Generating Indices Trading Signals
This indicator is used to generate technical buy and sell stock indexes trading signals. The three most common methods of generating trading signals used in indices trading are:
Zero-Centerline Crossovers Signals:
- A buy stock indices signal is generated when Momentum crosses above zero
- A sell stock indices signal is generated when Momentum crosses below zero
Momentum is used as an overbought/oversold indicator, to identify potential overbought and oversold levels based on previous readings; the previous high or low of the momentum is used to determine the overbought and oversold levels.
- Readings above the overbought level mean indices is overbought and a indices price correction is pending
- While readings below the oversold level the stock indexes price is oversold and a indices price rally is pending.
Indices Trend Line Breakouts:
Indices Trend lines can be drawn on the Momentum indicator connecting the peaks and troughs. Momentum begins to turn before stock indexes price thereby making it a leading indicator.
- Bullish reversal - Momentum readings breaking above a downward indices trend line warns of a possible bullish reversal stock indices signal while
- Bearish reversal - momentum readings breaking below an upward indices trend line warns of a possible bearish reversal indices signal.