Purpose of Momentum
The Momentum indicator measures the rate of change of price. In MetaTrader it is calculated as the current price divided by the price a number of candles ago, times 100. A value above 100 means price is higher than it was; below 100 means it is lower.
How It Works
When you select Momentum in the Trade Rule block, you can configure it with the following settings:
Period of Momentum
The number of candles back to compare with (standard: 14).
Applied Price of Momentum (What Momentum is calculated from)
Close Price: Uses the candle's closing price.
Open Price: Uses the candle's opening price.
High Price: Uses the highest price in the candle.
Low Price: Uses the lowest price in the candle.
Median Price: (High + Low) ÷ 2
Typical Price: (High + Low + Close) ÷ 3
Weighted Price: (High + Low + Open + Close) ÷ 4
Time Frame of Momentum
Sets the chart time frame for the Momentum calculation.
Can be replaced with a variable or input for quick testing and optimization.
Candle ID of Momentum
Defines which candle the calculation starts from.
0: Current candle (still forming).
1: Most recently closed candle.
Higher IDs refer to older candles.
Adjust of Momentum (Modify the Result)
Apply an adjustment to the calculated value by adding, subtracting, multiplying, or dividing by a number.
Example
If you set:
Period: 14
Applied Price: Close
Candle ID: 1
You get the Momentum value of the most recently closed candle. For example, 100.20 means the close is 0.2% higher than 14 candles earlier.
Use Cases
Use a cross of the 100 level as a momentum signal.
Detect accelerating trends when Momentum keeps rising.
Spot divergence between price and Momentum.
⚠ Tip: Momentum moves around 100, not around 0. Use 100 as your reference level in the Trade Rule block.