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You need to know the momentum indicator is important in iq option trading

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What is the IQ Option, how to register and open account IQ Option

How To Play IQ Option To Achieve Greatest Profits

3 basic EMA line algorithms in IQ Option

What is an RSI indicator? Use RSI to maximize return on investment (P1)

What is an RSI indicator? 6 ways to use RSI to maximize your return on your IQ Option (P2)

Technical Bollinger Band Indexes In IQ Option

Factors needed to become successful investors!

Ideological investment profit

Make a profit plan

Profit maximization strategy

Basic knowledge about making money online with Binary Option (IQ Option)

Basic operations with the interface of the IQ Option trading platform

How to Apply for IQ Option Account – How to Recharge and Verify Account IQ Option Via Visa Card

Sign up for an IQ Option account

“Risk Warning: Binary options trading may not be suitable for everyone, so please ensure that you fully understand the risks involved”

Momentum (momentum) is a technical analysis tool designed with the sole objective of determining the strength of a trend, that is, the degree of price change. Momentum is represented as an off-line flow and is easy to follow. This indicator can be used with any asset type at any time frame. Whether a new trader or a professional will see the usefulness of this tool. Please read the entire article to better understand the momentum indicator and how it works.

How does momentum work?
This index compares the current price of an asset with the price of assets in the past. The larger the difference, the greater the index. If there is no difference, the index will remain at 0, implying that the market is growing horizontally.

Momentum is expressed in IQ Option trading platform

Four different types of values ​​can be used: indexes can compare the maximum, minimum, opening and closing prices of underlying assets. The most used closing price. However, the remaining three values ​​can also be used to identify different types of signals.

How to set the Momentum?
To set the momentum indicator, you need to do the following:

Click on the ‘Indicators’ button in the lower left corner of the trading room and then go to the ‘Popular’ section.

Select ‘Momentum’ from the list of available options.

Click ‘Apply’ in the new window that appears.

The indicator will now be ready to use. Note that the time period and criteria values ​​can be adjusted to make the indicator more sensitive or to minimize the number of false signals.

How to use Momentum in business?
Momentum can be used to obtain timely and accurate trading signals. At the same time, it can also be used as an additional tool to help you validate signals received from other indicators.

The higher the index, the faster the price movement increases. The lower the index, the faster the price movement decreases. When the index returns to zero, the market has no trend at that time (flat market).

There are many different types of signals you can receive when trading using Momentum

First, it can be used as MACD. In this case, the trader will open a corresponding position (either buy or sell) when the index is at the highest or lowest level. When using this strategy, it is important to validate signals with indicators using other methods.

The peak and bottom are provided by the SELL / BUY (BUY / SELL) signal provided by the momentum indicator

Secondly, it can also be used as a predictive indicator. This strategy is based on the theory of acceleration / deceleration acceleration at the end of each trend cycle. When a trend, whether positive or negative, suddenly accelerates, usually it will not last long. Although quite useful, but this method is not 100% accurate and you need to consider carefully before using.

Third, Momentum can be used as an auxiliary tool to confirm or deny signals provided by other indicators. Whether it is Fractals, Alligator or Bollinger Bands, Momentum can help you make the right decision when needed.

Momentum is a simple technical analysis indicator and can become a useful complementary tool for your collection of business tools. Momentum is suitable for both new and experienced traders, as this indicator can be adjusted to fit each person’s trading strategy and style. However, you should also note that no technical analysis indicators are able to provide 100% accurate signals.

After reading this article but you do not have yourself an IQ Option account, click the sign up button below to create yourself an account right now.

“Risk Warning: Binary options trading may not be suitable for everyone, so please ensure that you fully understand the risks involved”

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Wish you happy and successful transactions!

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