The name of the Intraday Momentum Index mt5 forex indicator is an oscillator that measures the ratio between the directed change in price and the total change in the prices over a given period.
The indicator is displayed in a separate window below the main trading chart.
It fits all kinds of timeframes and mt5 currency pairs.
The indicator default settings can be modified directly from the indicator input tab. Feel free to play with the settings and parameters to fit your preferences. Let’s take a closer look at these inputs below.
Period – defines the period deployed in the calculation:
Overbought – represents the overbought level;
Oversold – represents 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 an overbought level and below the 30.00 level as an oversold level.
The price is bullish but overbought when the indicator line breaks and stays above the 70.00 level. Similarly, when the line breaks and remains below the 30.00 level, the price is considered 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.
The Intraday Momentum Index indicator is worth adding to your trading collection but remember to have realistic expectations. Like any other technical analysis tool, it cannot provide accurate signals 100% of the time. Thus, this forex indicator provides false signals occasionally. Its performance will vary significantly depending on market conditions. Feel free to develop your trading system based on it.
Intraday Momentum Index MT5 Forex Indicator Free Download
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