The Momentum Detecting indicator for MT4 (Metatrader 4) measures momentum for the underlying currency pair and displays the outcome in the upper left part of the chart.
Currency traders use this indicator to identify oversold and overbought market conditions and trend strength.
The indicator displays the current momentum value (pips), the last momentum value (pips), and 2nd last momentum value.
It also detects if momentum is increasing or decreasing over time.
It’s highly recommended to combine the Momentum indicator with other technical indicators or with price action tools in order to find the best trade entries and exits.
Free Download
Download the “Momentum detecting.ex4” indicator for MT4
Indicator Chart (EUR/USD H1)
The example chart below displays the Momentum Detecting MT4 indicator in action.
Tips:
Feel free to use your own favorite trade entry, stop loss and take profit method to trade with the Momentum Detecting Forex 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 Momentum Detecting and Free Forex Scalping Strategy
The MT4 Momentum Detecting and Free Forex Scalping Strategy is built for short-term trading on M1, M5, and M15 charts.
It combines the momentum readings from the Momentum Detecting Forex Indicator with the direct buy/sell histogram signals from the Free Forex Scalping Indicator.
This approach allows traders to enter trades in the direction of strong market momentum while using clear histogram signals to time entries precisely.
The Momentum Detecting Forex Indicator displays the current momentum of the currency pair in pips format in the upper left corner of the chart.
A positive value indicates bullish momentum, while a negative value indicates bearish momentum.
The Free Forex Scalping Indicator uses a green histogram for buy signals and a red histogram for sell signals.
Trades are taken when both momentum and histogram signals align.
Buy Entry Rules
- The Momentum Detecting Indicator shows positive momentum in pips, confirming upward price strength.
- Free Forex Scalping Indicator displays a green histogram, signaling a buy.
- Enter a buy trade at the open of the next candle.
- Set stop loss below the most recent swing low.
- Set take profit at the next resistance level or when the histogram turns red.
Sell Entry Rules
- The Momentum Detecting Indicator shows negative momentum in pips, confirming downward price strength.
- Free Forex Scalping Indicator displays a red histogram, signaling a sell.
- Enter a sell trade at the next candle open.
- Set stop loss above the most recent swing high.
- Set take profit at the next support level or when the histogram turns green.
Advantages
- Combines momentum strength with clear buy/sell signals for higher probability trades.
- Visual indicators are easy to read and act on quickly.
- Suitable for scalping multiple currency pairs on short timeframes.
- Helps avoid entering trades against the prevailing momentum.
- Works well on M1, M5, and M15 charts for intraday trading.
Drawbacks
- The momentum indicator may lag slightly during very rapid market changes.
- Not suitable for swing trading or long-term positions.
Case Study 1: GBP/JPY M1
During the London session, the Momentum Detecting Indicator showed +12 pips of momentum, and the Free Forex Scalping Indicator displayed a green histogram.
A buy trade was entered at 192.45 with a stop loss at 192.35 and a take profit at 192.65.
The trade captured +20 pips in 12 minutes, demonstrating the effectiveness of combining momentum and histogram confirmation for scalping.
Case Study 2: EUR/USD M5
During the New York session, the Momentum Detecting Indicator displayed -8 pips, indicating bearish momentum, while the Free Forex Scalping Indicator showed a red histogram.
A sell trade was opened at 1.0920 with a stop loss at 1.0930 and a take profit at 1.0905.
The trade reached the target within 25 minutes for +15 pips, illustrating precise timing using the combined indicators.
Strategy Tips
- Trade during high-volume sessions for stronger momentum and faster price movements.
- Only enter trades when both momentum and scalper histogram signals align.
- Use tight stop losses due to short timeframes and rapid market moves.
- Consider partial profit-taking on volatile pairs to secure gains.
- Focus on major currency pairs with tight spreads for scalping efficiency.
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Download the “Momentum detecting.ex4” indicator for Metatrader 4
