The MOM bot places orders based on the Momentum indicator. A buy signal is formed when a preset indicator limit is reached from below. A sell signal is formed when a preset indicator limit is reached from above. The indicator limit is set up by a user and depends on the trading instrument features.
Simple steps to set the MOM bot
- Set up the timeframe for your MOM bot.
- Set up the indicator length (the number of candles to calculate the indicator values).
- Set up the limits for signal formation. For example, if you set the limit for 100, a buy signal will be formed when the indicator line is crossed from below. If the signal line is crossed from above, a sell signal will be formed.
You can always deactivate the bot or change its settings.
The MOM indicator is a leading indicator to measure the coefficient of the asset price change. It compares the current asset price with a previously determined price. The indicator line forms an oscillator that moves below or above 0. This oscillator doesn’t have a lower or a higher limit.
100 is the base level for the MOM indicator. If the indicator line moves from below, crosses the 100 line, and continues the movement, a signal to open a long position is formed. If the indicator line stays above 100 for a long time, an upward trend is observed in the market.
Algorithmic bots
Indicator bots
