Indicator Technical Analysis Momentum It relates to oscillators and trend indicators. He and the direction of the asset value will show us, and overbought and oversold zones.
Binary Options Indicator Momentum It is very popular both for beginners and experienced traders. It can be successfully applied to trade independently. It is included in most trading advisors and successful strategies.
Set up an indicator on live chart not difficult. Momentum It is displayed in a separate window in the form of a curve, which moves relative to the zero mark.
The signals on momentum indicators:
- When a curve crosses the zero line downwards, is to open an option PUT.
- When a curve crosses the zero line upwards, the option is open CALL.
- Fluctuation curve above zero indicates an upward trend.
- Fluctuation curve below zero indicates a downtrend.
For calculation Momentum indicator It uses the leading moving average. Therefore, the indicator turns a curve ahead of price reversals. This option allows you to open on time in the appropriate direction.
This is a universal technical indicator, which was loved not only by beginners for its simplicity, but also by experienced pros for their multi-functionality and high accuracy of the appearance of trading signals.
Its main purpose is to determine the current trend and its strength. Unlike most other indicators, it shows leading signals. That is, Momentum is able to give a signal to turn the trend even before the trend is completed.
If the 10 period is set in the settings, this means that it gives the average value for the last 10 candles.
Advantages of the Momentum indicator:
- Simple and clear tool from the first time;
- Able to identify new trends in the market, entry points and opening deals;
- Ideal for both novice and experienced and demanding professionals;
- It is best to use it during long-term trading.
Disadvantages of the Momentum indicator:
- Alone, he is not able to give good signals. In 99% cases, traders use it only in combination with other technical tools. And all because he sins with a large number of false signals.
In order for the indicator to produce clearer signals, the pros advise to set it up correctly. If you set a short period, the indicator line will often intersect with the 100 level. For trading on the weekly chart, the ideal period is 25.