Chande's Momentum Oscillator Indicator (MT4) - Free Download - Best Forex Indicators

Introduction to the Chande’s Momentum Oscillator Indicator

The Chande’s Momentum Oscillator Indicator is a custom forex oscillator that was originally developed by Tushar Chande. As the name suggests, it is a technical indicator that attempts to capture the market’s momentum. As it is with all oscillators, a trader takes advantage of provided overbought/oversold levels.

The Chande’s Momentum Oscillator Indicator fits all kinds of timeframes and currency pairs. It is displayed in a separate window placed just below the main trading chart. The default settings can be modified directly from the input tab. Feel free to experiment with the settings and parameters to fit your personal preferences.

How does it work? How to apply in trading?

Trading Rules Explanation

The range of the Chande’s Momentum Oscillator Indicator is from -100 to 100. The oversold level is considered when the indicator’s value drops below the -50 level, and conversely, it is considered overbought when it exceeds the 50 level. We think that it shouldn’t be used as a standalone trading tool, therefore in the examples below we use it in conjunction with 100-period Exponential Moving Average.

Buy Signal

Follow these steps for a long trade:

General trend is bullish as price stays above the 100 EMA
Chande’s Momentum Oscillator drops below the -50 level and reverse
Price swings higher from recent low swing
Buy trade is triggered after the above conditions are met
Set stop loss a few pips below the last swing low of the market
Take profit or exit whenever the Chande’s Momentum Oscillator indicator provides opposite signal or use your own method of trade exit

Sell Signal

Follow these steps for a short trade:

General trend is bearish as price stays below the 100 EMA
Chande’s Momentum Oscillator exceeds above the 50 level and reverse
Price swings lower from recent high swing
Sell trade is triggered after the above conditions are met
Set stop loss a few pips above the last swing high of the market
Take profit or exit whenever the Chande’s Momentum Oscillator indicator provides opposite signal or use your own method of trade exit

As always, to achieve good results, remember about proper money management. To be a profitable trader you need to master discipline, emotions, and psychology. It is crucial to know when to trade, but also when not to trade. Avoid trading during unfavorable times and market conditions like low volume/volatility conditions, beyond major sessions, exotic currency pairs, wider spread, etc.

How to set up the Chande’s Momentum Oscillator indicator in MT4?

Installation Guide

Download the Chande’s Momentum Oscillator.rar archive at the bottom of this post, unpack it, then copy and paste the Chande’s Momentum Oscillator.ex4 or Chande’s Momentum Oscillator.mq4 indicator files into the MQL4 folder of the Metatrader 4 trading platform.

You can gain access to this folder by clicking the top menu options, which goes as follows:

File > Open Data Folder > MQL4 > Indicators (paste here).

Now go to the left side of your MT4 terminal. In the Navigator find the gauge name, right-click it and select Attach to the chart.

Bottom Line

The Chande’s Momentum Oscillator indicator is well worth adding to your trading collection. A good forex indicator will most probably enhance your chance of success. Nonetheless, remember about having realistic expectations. Just like any other technical analysis tool, is not capable of providing 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 own trading system based around it. Don’t forget that we still have more great free forex MT4 indicators to download and try.