This indicator is based on Momentum.
You can use the following MT4 indicator (attached bellow) named Momentum Monitor to check instantly if the market is oversold/overbought/neutral according to the OSMA indicator and for up to ten currencies with a click of a button.
Using the indicator
– It shows what the market extreme conditions are using the Momentum Monitor indicator for the last 10 periods
↓ Oversold Level 1
Oversold Level 2
↑ Overbought Level 1
Overbought Level 2
When you attach the indicator to the chart you get the following options. Default values are selected.
period : Number of periods for calculation of momentum
exlevel1 : boundary for defining extremes level 1
exlevel2: boundary for defining extremes level 2
extremeperiod : number of last momentum values under which current is compared to determine if extreme
Currency #: Which currency pair to be analysed at position #
This indicator is also available in Multi Time Frames Version. Check it out here Momentum Monitor Multi Time Frame Version.