Momentum (MOM) Indicator – FX Replay Guide

The Momentum (MOM) Indicator on FX Replay helps you quickly assess the speed and strength of price movements over time. It's a leading indicator that compares current price to a previous price n periods ago and is great for spotting trends, potential reversals, and confirming breakouts.

How to Use It in FX Replay:

1. Read the Indicator:

• MOM > 0: Uptrend.
• MOM < 0: Downtrend.
• MOM rising: Accelerating trend.
• MOM falling: Weakening trend.

2. Look for Divergences:

• Bullish: Price makes lower lows, MOM makes higher lows → possible reversal upward.
• Bearish: Price makes higher highs, MOM makes lower highs → potential top forming.

3. Spot Overbought/Oversold Areas:

• MOM doesn't have hard upper/lower limits, but in FX Replay you can use historical levels to draw reference lines.
• Extreme MOM values could signal exhaustion or continuation—watch for context.

4. Combine with FX Replay Tools:

• Confirm trends with Moving Averages, MACD, or RSI.
• Use the position tool for precise trade simulation.
• Backtest with the replay feature to test MOM performance in different market conditions.

5. Customize Periods Based on Your Strategy:

• Scalpers: Try 7–10 period MOM.
• Swing Traders: Try 14–21.
• Use FX Replay to test which setting works best with your asset and timeframe.