Momentum ATR Normalized Signal is a trend oscillator, used to plot crossovers between a unique moving average and Normalized ATR. It has been developed for identifying key reversal areas of short-term trends.
As a scalping oscillator, it works better when applied on shorter timeframes like M1, M5, and M15 of your forex MT4 trading platform.
Momentum ATR Normalized Signal offers great simplicity in trend-following forex trading solutions and can be advantageous for the newbie scalpers.
Moreover, Momentum ATR can be applied to trade all kinds of forex currency pairs available within the financial markets.
Momentum ATR Normalized Signal Overview
Download and install the signal on your MT4 terminal. Once you’re done, your chart will appear like the following image:
Momentum ATR Normalized Signal Explanation
Momentum ATR Normalized Signal generates effective trade signals by plotting crossovers between 9 Smoothed SigMA (blue line) and 25 Normalized ATR (green line). The SigMA moves above the ATR represents the bullish crossover signal.
Contrarily, the SigMA value drops below the current ATR level means it is a bearish crossover signal of the market trend.
Momentum ATR basically identifies the possible reversal points of market momentum and allows traders to take the opportunity to ride on short-term market trends. If you’re a newbie trader in the market, Momentum ATR can be an ideal solution to your daily scalping tasks.
Momentum ATR: Buy Conditions
- 9 Smoothed SigMA moves above the current 25 Normalized ATR level
- A solid bullish candle is plotted at the same time
- Buy triggers after the high of the respective bullish bar is broken
- Set stop loss below the current swing low of the market
- Exit long/take profit whenever the SigMA moves below the ATR level
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Momentum ATR: Sell Conditions
- 9 Smoothed SigMA moves below the current 25 Normalized ATR level
- A solid bearish candle is plotted at the same time
- Sell triggers after the low of the respective bearish bar is broken
- Set stop loss above the current swing high of the market
- Exit short/take profit whenever the SigMA moves above the ATR level