Momentum Ratio Oscillator for MT4 & MT5

The indicator computes a smoother momentum ratio by comparing the current value to the previous value through a series of EMA calculations. The outcome resembles some existing indicators, such as volume zone or price zone oscillators, due to the EMA's smoothing effect, which creates a "smooth step-like" result during sudden value changes. However, the math behind these indicators is entirely different.

How is it used?

In this version you can use either color changes or levels crosses (since the indicator is bound to 0 to 1 range) as signals

Trend confirmation

• If the indicator line stays above the 0.8 level, the trend is a strong bullish.
• If the indicator line stays below the 0.2 level, the trend is a strong bearish.
• Whenever the oscillator crosses above 0.5, this shows a shift towards bullish momentum.
• When the oscillator crosses below the 0.5 level, this shows the beginning of bearish momentum.

Entries

• Enter by joining the trend whenever the oscillator rebounds from 0.2 or 0.8 with color change.
• Exit when the opposite signal appears.

Did a mt4 version.