Watch the testing video here:
Intraday Momentum Index Indicator
Introduction to the Intraday Momentum Index Indicator
The name of the 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 the given period of time.
The indicator is displayed in a separate window placed just below the main trading chart.
It fits all kinds of timeframes and currency pairs.
The default indicator settings can be modified directly from the input tab. Feel free to experiment with the settings and parameters to fit your personal preferences. Let’s take a closer look at these inputs below.
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)
U = SMA(Up, Period),
D = SMA(Down, Period)
If Close > Open:
Up = Close – Open
Up = 0
If Close < Open:
Down = Open – Close
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.
How to set up the Intraday Momentum Index indicator in MT5?
Copy and paste the IMI.mq5 or IMI.ex5 indicator files into the MQL5 folder of the Metatrader 5 trading platform.
You can gain access to this folder by clicking the top menu options, which goes as follows:
File > Open Data Folder > MQL5 > Indicators (paste here).
Now go to the left side of your MT5 terminal. In the Navigator find the gauge name, right-click it and select Attach to the chart.
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