Linear Momentum is a free MT4 (Metatrader 4) indicator that displays buy & sell signals based on linear regression and momentum.
The indicator appears in a separate MT4 chart window and consists of a red colored line that oscillates above and below the 0.00 neutral level.
Linear Momentum can be a useful technical trading tool in multiple ways.
Buy & Sell Trade Example
- During an uptrending market, open a buy position when the red line crosses the 0.00 level bottom-up.
- During a downtrending market, open a sell position when the red line crosses the 0.00 level top-down.
The Linear Momentum indicator can be used for trade entries and exits or as a shorter-term trend confirmation filter.
The indicator works equally well on all currency pairs (majors, minors and exotic) and shows promising results if used correctly.
Free Download
Download the “Linear-Momentum.mq4” indicator for MT4
Indicator Chart (EUR/USD H1)
The picture below shows the Linear Momentum mt4 indicator in action on the trading chart.
Trading Tips:
Feel free to use your own favorite trade entry, stop loss and take profit method to trade with the Linear Momentum indicator.
As always, trade in agreement with the overall trend and practice on a demo account first until you fully understand this indicator.
Please note that even the best trading indicator cannot yield a 100% win rate over long periods.
Indicator Specifications & Inputs:
Trading Platform: Developed for Metatrader 4 (MT4)
Currency pairs: Works for any pair
Time frames: Works for any time frame
Trade Style: Works for scalping, day trading and swing trading
Input Parameters: Variable (inputs tab), color settings & style
Indicator type: Momentum
Does the indicator repaint? No.
MT4 Scalping Strategy Using Linear Momentum and Gann Trend Oscillator MTF Indicators
This MT4 scalping strategy combines the momentum-based signals from the Linear Momentum Forex Indicator with the trend-confirming insights of the Gann Trend Oscillator MTF Indicator.
It is designed for short-term traders looking to capture quick price movements on active currency pairs.
The strategy works best on 1-minute to 5-minute charts, making it ideal for scalpers.
By combining momentum signals with trend confirmation, traders can enter trades with higher probability while filtering out false signals.
The Linear Momentum indicator signals a buy when the price moves back above zero and a sell when it moves back below zero.
The Gann Trend Oscillator uses blue histogram bars for bullish trends and violet bars for bearish trends.
Buy Entry Rules
- Wait for the Linear Momentum indicator to move back above 0, signaling a buy opportunity.
- Confirm the buy with a blue histogram on the Gann Trend Oscillator, indicating a bullish trend.
- Enter a buy trade at the market price once both conditions are met.
- Set a stop loss below the recent swing low or a nearby support level.
- Set a take profit for 5–15 pips or near the next resistance level, depending on market volatility.
Sell Entry Rules
- Wait for the Linear Momentum indicator to move back below 0, signaling a sell opportunity.
- Confirm the sell with a violet histogram on the Gann Trend Oscillator, indicating a bearish trend.
- Enter a sell trade at the market price once both conditions are met.
- Set a stop loss above the recent swing high or a nearby resistance level.
- Set a take profit for 5–15 pips or near the next support level, depending on market volatility.
Advantages
- Combines momentum signals with trend confirmation for higher accuracy.
- Effective on short timeframes, allowing for multiple trades per session.
- Visual signals are easy to interpret, reducing decision-making time.
- Suitable for a variety of currency pairs, including AUD/USD, USD/JPY, and NZD/USD.
Drawbacks
- Rapid price movements can produce false signals if not confirmed by both indicators.
- Scalping on short timeframes requires constant attention and fast execution.
- Frequent trading increases transaction costs, especially with higher spreads.
Case Study 1: AUD/JPY on 1-Minute Chart
On the AUD/JPY 1-minute chart, the Linear Momentum indicator moved back above 0, signaling a buy entry.
The Gann Trend Oscillator displayed blue histogram bars, confirming the bullish trend.
The trade was entered at 89.50, with a stop loss at 89.45 and a take profit set for 5–15 pips or near the next resistance level at 89.60.
The trade closed successfully with a 10-pip gain within 5 minutes.
Case Study 2: NZD/USD on 5-Minute Chart
On the NZD/USD 5-minute chart, the Linear Momentum indicator moved back below 0, signaling a sell entry.
The Gann Trend Oscillator showed violet histogram bars, confirming the bearish trend.
The trade was entered at 0.6500, with a stop loss at 0.6510 and a take profit set for 5–15 pips or near the next support level at 0.6485.
The trade reached the take profit target, netting 15 pips in 10 minutes.
Strategy Tips
- Always wait for confirmation from both indicators to avoid false signals.
- Use recent swing highs and lows to set precise stop loss levels.
- Adjust take profit levels between 5–15 pips or to the next support/resistance, depending on volatility.
- Monitor economic news and events that may cause rapid price spikes.
Download Now
Download the “Linear-Momentum.mq4” indicator for Metatrader 4
