Forex Morning Trade System

3.6 Chart & Indicators explained

Now that we have everything ready, our MetaTrader looks like this:

I will shortly explain all the indicators we will be using.

3.6.1 Momentum

The Momentum indicator is a speed of movement (or rate of change) indicator, that is designed to identify the speed (or strength) of a price movement.

In other words you should be buying when the price is picking up momentum and selling when that momentum has been lost.

We use Momentum with period 60, computed from typical price.

The rule is that we go long only if the Momentum is higher than 100, and go short if Momentum is lower than 100.

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