Intraday Momentum Index Indicator
Platform: MT5 Type: Momentum Last update: September 24, 2024The Intraday Momentum Index indicator is an oscillator the measures the ratio between the directed change in price and the total change in the prices over a given period of time.
There are some settings to define:
Period – defines the period deployed in the calculation:
Overbought – defines the overbought level;
Oversold – defines the oversold level.
The formula for the Intraday Momentum Index indicator:
The calculations of the Intraday Momentum Index indicator are based on the following formula:
IMI = 100*U /(U+D)
Where:
U = SMA(Up, Period),
D = SMA(Down, Period)
If Close > Open:
Up = Close – Open
Otherwise:
Up = 0
If Close < Open:
Down = Open – Close
Otherwise:
Down = 0
How to use the Intraday Momentum Index indicator:
That forex indicator clearly outlines the area above the 70.00 level as overbought level and the one below the 30.00 level as oversold level.
When the indicator line breaks and stays above the 70.00 level, the price is considered to be bullish, but also overbought. Similarly, when the line breaks and stays below the 30.00 level, the price is considered to be bearish, but also oversold.
