Momentum Pinball Indicator

Momentum Pinball Indicator

The Momentum Pinball Indicator for MT5 provides forex trading signals based on oversold and overbought conditions and momentum by combining RSI and ROC.

The Momentum pinball indicator for MT5 is an oscillator that generates buy and sell signals in the Forex market using a combination of classic RSI and ROC indicators. Since the indicator is an oscillator, the signals are based on the indicator values of 70 and 30. In fact, this indicator combines oversold and overbought levels with momentum to provide profitable trading signals.

The indicator requires additional price action confirmation. Thus, new forex traders should have a basic understanding of the application of price action.

However, advanced forex traders can easily use the indicator to buy and sell. At the same time, the indicator works well on all timeframes.

Momentum Pinball Indicator For MT5 trading Signals

The above EURUSD H4 candlestick price chart shows the Momentum MT5 pinball indicator in action. Since the indicator is an oscillator, the values fluctuate between 0 and 100. In addition, the indicator draws one blue line in a separate indicator window.

The indicator is based on the rules of impulse pinball by L. Raschke and L. Connors from the book Street Smarts: High Probability Short Term Trading Strategies.

By default, the indicator uses 3-period RSI and 1-period ROC to calculate the indicator. Usually the indicator fluctuates between high and low values in the indicator window. Forex trading signals are displayed when the indicator reaches a value above 80 or below 20.

Once the indicator values exceed 80, traders should enter the market with a sell position with a stop loss above the previous swing high. Similarly, once the indicator values drop below 20, traders should place a buy trade with a stop loss below the previous swing high.

However, traders should apply price action to confirm the price reversal before entering the trade.

Conclusion
The pinball momentum indicator is an amazing indicator that combines RSI overbought and oversold conditions and momentum on the rate of change indicator.