MOMENTUM INDICATOR
Momentum
Compares current price with price a fixed number of periods ago.
Start with the input, not the story.
Absolute or ratio-based directional change over the lookback.
Plain-language formula
MT5 commonly reports current close divided by the close N periods ago, multiplied by 100.
Platform implementations can differ in price input, smoothing, indexing and rounding. Record the exact settings and provider before comparing results.
03 / USEFUL REGIME
Where it may help
Simple directional state and acceleration studies.
04 / WEAK REGIME
Where it struggles
Noisy short windows and strategies without a separate risk model.
Add a different measurement.
EMAATR
A complementary tool should answer a different question, such as volatility, regime or position risk. Test the base rule before testing the combination.
The shortcut to avoid
Confusing high momentum with low-risk entry.
A testable next step
Measure results by momentum decile rather than selecting one threshold first.