Momentum ATR Normalized Signal Indicator

The Momentum ATR Normalized Signal Indicator is a simple indicator that works like any other momentum oscillator. Like the RSI, the indicator plots two lines on the chart. One is called the momentum line, while the other is called the signal line. The indicator oscillates between 5.4 and -5.2. The blue line represents the signal line, while the gold color mentions the momentum line. The indicator presents signals when the two lines crossover each other. By mentioning bullish and bearish crossovers, the indicator presents us with the entry and exit points. Indicator works best on shorter timeframes. However, traders can apply the indicator on longer timeframes too. Traders can also combine the indicator with other indicators like the RSI or MACD. Momentum ATR Normalized Signal Indicator BUY/SELL signals The above EUR/USD H4 chart shows BUY and SELL signals with the indicator. To determine the BUY and SELL signals, traders need to identify crossovers. If the blue signal line crosses above the momentum line, there is a chance of a stronger uptrend. Here traders can enter long. Traders can exit their positions when the gold line goes above the signal line. Conversely, if the gold momentum line crosses above the signal line, there is a stronger chance of a downtrend. Here traders can exit their positions when the signal line goes above the momentum line. The presence of a large bullish candle in an uptrend and a large bearish candle in a downtrend acts confirmation. For further signal confirmation, traders can apply RSI or Moving Average alongside the Momentum ATR Normalized Signal Indicator. Conclusion The Momentum ATR Normalized Signal Indicator works like any other oscillator. By drawing crossovers, it presents us with BUY and SELL signals. Traders can find exact entry and exit points with the help of an indicator. In addition, you can download the indicator for free from our website.