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The Momentum Histo trading indicator is a specially developed trading algorithm, which is based on the indicators included in the standard forex set. This trading algorithm is very interesting and effective, as it allows choosing an indicator, the work of which is taken as the basis for calculations. This choice includes Momentum, ATR, CCI and RSI indicators. The indicator can be used in trading for various purposes, for example, to determine the strength and direction of the current trend and open trades during this period. Momentum Histo is represented on the chart as a histogram with a signal level of 0, which crosses it and acquires a certain color depending on the current market conditions.
Momentum Histo is suitable for use on any timeframe with any currency pairs, as their choice does not affect the effectiveness of the indicator itself.
Input parameters
The Momentum Histo indicator settings consist of several sections. The Input Parameters section consists of seven items, each of which affects its technical operation and allows adjusting the indicator to adapted trading conditions. While the Colors section is used to change the color scheme and thickness of the indicator values, and Levels - to add additional signal levels to the indicator window, in addition to the already added level 0.
- Indicator name - parameter that allows selecting a convenient indicator that will be used as the basis for calculations. The default value is Momentum.
- Indicator period - period of the selected indicator. The default value is 14.
- Level indicator - indicator level. Default value is 100.
- Applied price for Momentum, CCI or RSI - the type of price to which the calculations of the selected indicator will be applied. Close price by default.
- Enable Alerts - the parameter responsible for notifications when a certain signal is received. The default value is false.
- Enable Email Notification - parameter responsible for notifications about the signal as an email to the previously specified mail. The default value is false.
- Enable Push Notification - signal parameter in the form of a push notification to a pre-specified mobile device false.
Indicator signals
Despite the fact that Momentum Histo can be based on different indicators, such as Momentum, ATR, CCI and RSI, the algorithm for using it does not change at all, only some indicators can change. Trading is made with a trend. In order to determine the current trend and its strength, it is only necessary to take into account the location of the histogram relative to level 0, its color and the number of columns with the same values. If these indicators determine an uptrend, long positions are opened, if a downtrend, short positions are opened. This, in turn must be confirmed by the indicator signals.
Signal for Buy trades:
- At least three bars of the histogram have a color with a growth value and are located above level 0, while their size will be entered in ascending order.
Upon receipt of such conditions, on a candlestick that after the signal one, a buy trade can be opened, due to the presence of a strong upward movement in the market, which is confirmed by the indicator signal. The trade should be closed upon receipt of the opposite conditions, namely, when the location and color of the columns change. At this moment, a change in trend is expected, which will allow considering the opening new trades.
Signal for Sell trades:
- Multiple histogram bars that are color-coded with falling value fall below level 0 from low to high.
Upon receipt of a signal due to such conditions on the candle that is formed after the signal one, a short position may be opened. It should be closed after the indicator determines a change in the current downtrend, namely when the histogram bars begin to form in the opposite direction and turn into a different color. When the trend changes, it can be considered opening new trades.
Conclusion
The Momentum Histo indicator is a very accurate and efficient algorithm that allows fully adapting it for convenient and familiar trading, as it provides a choice of the main indicator for calculations. It is very easy to use and suitable even for beginners, thanks to its easy-to-perceive visualization and available signals. At the same time, in order to gain good trading skills and gain experience in using the indicator, preliminary practice on a demo account is recommended.
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