Momentum Reversal Detector Indicator MT4
- Indikatoren
- Eda Kaya
- Version: 1.3
Momentum Reversal Detector Indicator for MetaTrader 4
The Momentum Reversal Detector Indicator for MetaTrader 4 is designed to detect potential trend reversals by evaluating price momentum shifts.
It utilizes a black histogram to monitor momentum changes and highlights possible entry and exit points at critical turning zones. When the indicator detects positive momentum on a higher timeframe, the background color shifts to light green. It also marks Up Divergence (purple) at the exhaustion of uptrends and Down Divergence (green) at the exhaustion of downtrends.
«Indicator Installation & User Guide»
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Indicator Table
Indicator Category | Oscillator – Signal and Forecast |
Platforms | MetaTrader 4 |
Trading Skills | Beginner |
Indicator Types | Reversal – Entry and Exit – Non-Repaint |
Timeframe | Multi-timeframe |
Trading Style | Scalping – Day Trading – Short-Term – Medium-Term |
Trading Instruments | Forex – Stocks – Commodities – Cryptocurrencies |
Overview
The Momentum Reversal Detector Indicator serves as a robust oscillator for spotting market reversal points. It also helps traders determine strategic entry and exit opportunities, offering valuable support for optimizing trade management and aligning with prevailing strong trends across different financial assets.
Uptrend Signals
The following example displays the EUR/USD (EURUSD) chart on the 1-hour timeframe. After a downtrend phase, the black histogram moves into a positive momentum zone, generating an uptrend alert. The background shifts to light green, suggesting momentum confirmation from a higher timeframe. Traders can utilize this condition to validate potential buy setups based on their strategies.
Downtrend Signals
In the image of the USD/CHF (USDCHF) chart using the 30-minute timeframe, the indicator detects a trend shift following an uptrend. As the black histogram transitions into a negative momentum area, a downtrend signal emerges. The light green background indicates momentum alignment on a broader scale. Traders may use this signal to refine their entries for sell positions.
Indicator Settings
- num_bars: Defines 1000 bars for calculation reference.
- Momentum_Period: Sets the observation period to 34.
- Momentum: Specifies the momentum strength at 125.
- Show_Different Background: Enables distinct background color display when set to true.
- Positive_Background_Color: Applies light green to highlight positive momentum zones.
- Show_Divergence_Background: Activates background color changes for divergence signals.
- UP_Divergence_Color: Sets purple for areas signaling up divergence.
- DOWN_Divergence_Color: Sets green for areas signaling down divergence.
Summary
The Momentum Reversal Detector Indicator for MetaTrader 4 offers a reliable mechanism for tracking price behavior and identifying potential reversal moments. Its non-repainting nature, multi-timeframe adaptability, and visual divergence cues enhance traders' decision-making processes, helping them strengthen their trading strategies with greater confidence and precision.