About the DSS Momentum Indicator
The DSS Momentum indicator for MT4 combines stochastic calculations with moving averages to measure market momentum.
It fluctuates between 0 and 100, signaling oversold conditions near 0 and overbought levels near 100.
The indicator draws two lines: green for bullish momentum and orange for bearish momentum.
Traders use these signals to identify potential buy or sell trades aligned with market trends.
It is strongly recommended to combine the DSS Momentum indicator with trend-following tools like EMA, SMA, ADMI, or Bollinger Bands.
This ensures trades are taken only in the direction of the prevailing trend, improving success rates.
When the market is in an uptrend, focus only on green line signals.
In a downtrend, only consider orange line signals.
This approach reduces false signals and keeps trading disciplined.
Free Download
Download the “dss-averages-of-momentum.mq4” MT4 indicator
Key Features
- The oscillator fluctuates between 0 and 100 to indicate overbought and oversold conditions.
- Green line signals bullish momentum for buy trades.
- Orange line signals bearish momentum for sell trades.
- Works best in combination with trend-following indicators.
Indicator Chart
The DSS Momentum indicator appears beneath the price movements and displays green and orange oscillator lines.
Green lines indicate potential buying opportunities while orange lines indicate potential selling opportunities.
Traders can quickly see where momentum aligns with the trend for higher probability trades.
Guide to Trade with DSS Momentum Indicator
Buy Rules
- Go long when the green DSS line appears near the 0 level.
- Confirm the market is in an uptrend using a trend-following indicator.
- Only enter trades when momentum aligns with the trend direction.
- Monitor price action for additional confirmation before entering.
Sell Rules
- Go short when the orange DSS line appears near the 100 level.
- Confirm the market is in a downtrend using a trend-following indicator.
- Only enter trades when momentum aligns with the trend direction.
- Watch for signs of trend continuation before executing the trade.
Stop Loss
- For buy trades, place a stop loss below the recent swing low or support level.
- For sell trades, place a stop loss above the recent swing high or resistance level.
Take Profit
- Close buy trades when a bearish momentum signal appears or target key resistance.
- Close sell trades when a bullish momentum signal appears or target key support.
DSS Momentum and Bykov Trend Signals MT4 Forex Scalping Strategy
This MT4 scalping strategy combines the trend confirmation of the Bykov Trend Signals MT4 Forex Indicator with the precise entry timing of the DSS Momentum MT4 Forex Indicator.
It is designed for traders who prefer fast trades on M1 and M5 charts and want clear rules to capture high-probability short-term moves.
The Bykov Trend Signals indicator displays colored arrows to indicate the dominant trend.
An aqua arrow shows a bullish trend, while a magenta arrow shows a bearish trend.
The DSS Momentum indicator provides entry signals through its signal lines, with green indicating a buy opportunity and orange indicating a sell opportunity.
Using both indicators together helps traders enter trades with trend confirmation and optimal timing.
This strategy works best on major forex pairs and gold during active market sessions.
It is ideal for scalpers who want a structured approach without overcomplicating trade execution.
Buy Entry Rules
- The Bykov Trend Signals indicator must show an aqua arrow, confirming a bullish trend.
- Wait for the green signal line to appear on the DSS Momentum indicator.
- Enter a buy trade at the close of the candle where the green line appears.
- Place the stop loss below the most recent swing low or minor support level.
- Keep the buy trade open while the DSS Momentum green line remains active.
- Close the trade immediately if the green line reverses or the Bykov arrow changes to magenta.
Sell Entry Rules
- The Bykov Trend Signals indicator must show a magenta arrow, confirming a bearish trend.
- Wait for the orange signal line to appear on the DSS Momentum indicator.
- Enter a sell trade at the close of the candle where the orange line appears.
- Place the stop loss above the most recent swing high or minor resistance level.
- Keep the sell trade open while the DSS Momentum orange line remains active.
- Close the trade immediately if the orange line reverses or the Bykov arrow changes to aqua.
Advantages
- Combines trend confirmation with precise entry signals for higher probability trades.
- Helps avoid countertrend trades by using Bykov trend arrows as a filter.
- Works well on M1 and M5 charts during high liquidity periods.
- Applicable to multiple forex pairs and gold with consistent performance.
Drawbacks
- Requires active monitoring of charts for quick execution.
- Signal reversals can result in early exits or whipsaws.
- Overtrading can occur if signals are ignored during choppy conditions.
Case Study 1
On GBPJPY M5 during the London session, the Bykov Trend Signals indicator displayed an aqua arrow indicating a bullish trend.
The DSS Momentum indicator showed a green signal line after a minor pullback.
A buy trade was entered and held while the green line remained active and the trend stayed bullish.
When the green line disappeared and the Bykov arrow reversed, the trade was closed, capturing a strong intraday upward move.
Case Study 2
On AUDUSD M1 during the New York session, the Bykov Trend Signals indicator showed a magenta arrow indicating a bearish trend.
After a short retracement, the DSS Momentum indicator displayed an orange signal line.
A sell trade was opened and maintained while both indicators confirmed the downtrend.
When the orange line reversed and the Bykov arrow changed to aqua, the trade was closed, locking in intraday profit.
Strategy Tips
- Trade only in the direction of the Bykov trend arrow to improve probability of success.
- Enter trades only when DSS Momentum lines align with the trend to filter weak setups.
- Focus on major pairs with good volatility for more reliable scalping.
- Use recent swing highs and lows for placing stop losses safely.
- Monitor both indicators for early exit signals to protect profits.
Download Now
Download the “dss-averages-of-momentum.mq4” Metatrader 4 indicator
FAQ
What market conditions suit the DSS Momentum indicator best?
The indicator performs well in trending markets where momentum aligns with the trend.
Avoid using it during choppy or sideways markets without confirmation from other tools.
How can I avoid false signals?
Focus only on green lines in uptrends and orange lines in downtrends.
Combining with trend-following indicators or support/resistance levels helps filter weak signals.
Can the indicator be used as a standalone system?
It can be used alone for momentum-based entries, but combining it with trend confirmation and risk management improves overall trade performance.
Summary
The DSS Momentum indicator for MT4 provides clear momentum signals with green and orange lines to highlight potential buy and sell trades.
It simplifies spotting trades that align with the prevailing trend.
The indicator works for all time frames and currency pairs.
Using it alongside trend analysis and proper trade management enhances consistency and trading discipline.
