Chande’s Momentum Oscillator is known as one of the best Forex momentum indicators among the top-class Forex indicator family. It has managed to show extraordinary signaling performance with better accuracy at judging the market momentum. Its acceptance is getting wider and the number of users getting accelerated to higher once its astonishing backtest result is unveiled.
This indicator fits great with all time frame charts and it can be applied on any Forex currency pair window. Besides, because of its simplicity, it can be added to any trend following strategy to keep the trading edge sharper.
Chande’s Momentum Oscillator Overview
Once you are done with the installation of the indicator at your Forex mt4 terminal, your trading chart will be appeared as follows:
This particular indicator mainly points out the oversold/overbought areas of the market. Its parameter at 50 signals the overbought condition and a value at -50 indicates the oversold condition of the market respectively. That is how it unlocks the door to catch a trend from the very beginning of its journey. Thus, it earns a better momentum with the trade at the right direction and creates enough room for traders for their decision makings.
Momentum Based Strategy: Day Momentum Strategy
Chande’s Momentum Oscillator: Buy Parameters
- Indicator value reaches to -50 and bounces upwards
- A bullish bar is formed at the same moment
- Buy triggers at the break of respective bullish bar’s high
- Put stop loss below the low of the signaling candle
- Exit long whenever Chande’s Momentum Oscillator turns below 50 after reaching the overbought area
Chande’s Momentum Oscillator: Sell Parameters
- Indicator value reaches to 50 and turns downwards
- A bearish bar is formed at the same moment
- Sell triggers at the break of respective bearish bar’s low
- Put stop loss above the high of the signaling candle
- Exit short whenever Chande’s Momentum Oscillator turns above -50 after reaching the oversold area