Momentum Pinball Indicator
Momentum Pinball Indicator For MT4 provides forex trading signals based on oversold and overbought conditions and momentum by combining RSI and ROC.
Description
The Momentum pinball indicator for MT4 is an oscillator that provides buy and sell forex trading signals using the combination of the classic RSI and ROC indicators. As the indicator is an oscillator the signals are based on indicator values of 80 and 20. In fact, this indicator combines oversold and overbought levels with momentum to provide profitable trading signals.
The indicator requires an additional confirmation using price action. So, new forex traders should have basic understanding of apply price action. However, advanced forex traders can use the indicator to buy and sell easily. Moreover, the indicator works well in all time frames.
Momentum Pinball Indicator For MT4 trading Signals
The above EURUSD H4 candlestick price chart shows the Momentum pinball indicator for MT4 in action. As the indicator is an oscillator, the values move between 0 and 100. Furthermore, the indicator plots a single blue line in a separate indicator window.
The indicator is based on the rules of momentum pinball by L.Raschke and L.Connors book on Street Smarts: High Probability Short Term Trading Strategies.
By default, the indicator applies a 3 period RSI and a 1 period ROC for indicator calculation. Generally, the indicator pinballs between high and low values within the indicator window. Forex trading signals are derived once the indicator reaches above 80 or below 20.
Once the indicator values reach above 80, traders should enter the market with a sell position with a stop loss above the previous swing high. Similarly, once the indicator values move below 20 traders should place a buy trade with a stop loss below the previous swing high.
However, traders must apply price action to confirm the price reversals before entering the trade.
Conclusion
The momentum pinball indicator is an amazing indicator that combines overbought and oversold conditions of RSI and momentum by Rate of change indicator.