
Momentum ATR Normalized Signal Indicator
Platform: MT4 Type: Momentum Last update: November 11, 2024The Momentum ATR Normalized Signal Indicator for MT4 operates as an oscillator and its signals are based on crossover two lines. Their specific alignment corresponds to either bullish or bearish trend. The displayed smoothed readings are calculated on average true range values.
Example chart
Once you activate it in your trading platform, you will see similar screen to the one below:
Understanding the momentum atr normalized signal indicator for mt4
Anatomy
The dotted yellow line represents the momentum line and a blue line is a so called signal line. The most important moments are when these lines intersect each other as such setups correspond to potential entry and exit points.
Trading rules
The approach is quite simple. If the blue line crosses above the yellow line, it means an ptrend and traders should consider a long position. The reversed alignment suggests a short position. What’s more, the trade exit or take profit is recommended at the occurance of the opposite signal.
Such analysis can be further confirmed by onboarding technical indicators like moving average or macd and they should be in agreement.
Settings
These are available settings to customize.
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