The Anchored Momentum Forex indicator works great for rapid trade entry.
Many traders use it for scalping and day trading purposes because it gives you numerous trade opportunities during the trading day.
The indicator is composed of a blue signal line that crosses above and below its zero level.
This momentum indicator works well for beginners and seasoned traders alike.
Interpret the Anchored Momentum Indicator as follows:
- The price is considered bullish when the Anchored Momentum indicator crosses back above the 0.00 level from below.
- The price is considered bearish when the Anchored Momentum indicator crosses back below the 0.00 level from above.
Tip: It’s highly recommended to combine the Anchored Momentum Forex Indicator with a trend trading indicator to get the most profit out of it.
You could combine it with a 100 EMA, 200 SMA or with any other trend trading indicator of your preference.
An example
When price trades above the 100 EMA, the overall trend is up.
Now…
Only trade the positive Anchored Momentum indicator zero level crosses (back above the zero level from below) and ignore the negative crosses (back below the zero level)
Feel free to explore the indicator’s different parameters and settings to create your personalized indicator setup.
Download This MT4 Forex Indicator Free
Download the “anchored-momentum.ex4” Metatrader 4 indicator
Anchored Momentum Forex Indicator Chart
Here’s an example of how the indicator should look like when loaded onto the Metatrader 4 chart.
This indicator works for any currency pair and time frame of your preference.
Finding Buy and Sell Triggers With The Anchored Momentum Forex Indicator
Below is an example of how to buy and sell currency pairs with this Forex indicator:
Buy Trigger: Open a buy trade when the indicator’s blue signal line crosses back above the zero level from below and the existing trend is upward.
Place a protective stop loss below most recent support, or use your own stop loss placement strategy.
Close the momentum buy trade for a reward/risk ratio of 1.4 or higher.
Alternatively, go for a fixed take profit target, for example, close the buy trade for 12 pips on the 1-minute trading chart.
Sell Trigger: Open a sell trade when the indicator’s blue signal line crosses back below the zero level from above and the existing trend is downward.
Place a protective stop loss above most recent resistance, or use your own stop loss placement strategy.
Close the momentum buy trade for a reward/risk ratio of 1.4 or higher.
Alternatively, go for a fixed take profit target, for example, close the sell trade for 22 pips on the 5-minute trading chart.
Download This Forex Indicator Now
Download the “anchored-momentum.ex4” MT4 indicator
Adjustable Parameters
Momentum period, smooth period, level, colors, width, style.
Usage
The indicator can be used as a stand-alone signals indicator.
It can also be combined with:
- Trend indicators (Moving Average, Bollinger Bands, ADMI, Parabolic SAR,…)
- Price action methods and techniques
More Info About This Indicator
Tradable Currency pairs: Any
Trading Platform: MT4
Time frames: M1, M5, M15, M30, H1, H4, D1, W1
Indicator Type: momentum
Installation
Copy and paste the indicator in the MT4 indicators data folder.
Then restart the MT4 terminal and attach it to any chart.
