The iAnchMom Indicator for MT4 is a momentum-based trading tool that calculates market strength using a combination of the Exponential Moving Average (EMA) and Simple Moving Average (SMA). It displays the result as a histogram in a separate indicator window, helping traders quickly identify trend direction and shifts in momentum.
By measuring the relationship between EMA and SMA values on each closed bar, the indicator highlights bullish and bearish pressure while signaling potential reversals when momentum changes.
This indicator is simple, visual, and suitable for both beginner and advanced traders. It works effectively across all timeframes, making it ideal for Scalping, intraday trading, and long-term trend strategies.
How the iAnchMom Indicator Works
The indicator displays:
- Teal histogram bars
- A clearly marked zero level
Signal Interpretation:
- Histogram above zero → Bullish momentum
- Histogram below zero → Bearish momentum
- Larger distance from zero → Stronger momentum
- Crossover of zero line → Potential trend shift
Because it recalculates using EMA and SMA values for every closed candle, it efficiently captures early changes in momentum.
Trading Strategy Using iAnchMom
Buy Setup
- Wait for the histogram to cross above the zero level
- Confirm strengthening bullish bars
- Enter a buy trade
- Place stop loss below the previous swing low
- Exit at opposite momentum crossover or based on risk-reward ratio
Sell Setup
- Wait for the histogram to cross below the zero level
- Confirm strengthening bearish bars
- Enter a sell trade
- Place stop loss above the previous swing high
- Close position when bullish crossover appears
Key Features and Benefits
✔ Combines EMA and SMA for accurate momentum calculation
✔ Clear zero-line crossover signals
✔ Measures both direction and strength of momentum
✔ Works on all timeframes
✔ Suitable for manual and automated strategies
✔ Easy-to-read histogram format
Why Use the iAnchMom Indicator?
Momentum often shifts before price reversals become obvious. The iAnchMom Indicator helps traders detect these shifts early, allowing them to enter trades in alignment with emerging trends and exit when momentum weakens.
By focusing on momentum rather than lagging signals, traders can improve timing and reduce false entries.
Conclusion
The iAnchMom Indicator for MT4 is a powerful momentum analysis tool that uses EMA and SMA calculations to generate clear bullish and bearish signals. With zero-line crossovers and strength measurement via histogram bars, it is a valuable addition to any trend-following or momentum-based trading system.
