buy when 5 period momentum is positive and exceeds a threshold of 0.5% of prior close . sell when momentum is negative and exceeds -0.5%
On mt5 , there is an indicator momentum but i cant understand how it works
thanks
It’s not really worth worrying about.
The classic theory of technical indicators suggests that whenever the indicator value exceeds a certain number you should buy, and you should hold that position until it drops below another certain number.
Whatever the indicator, whatever the number, whatever the time-frame, that is all BS.
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I get what you mean but again, try MA crossover strategy with MA of 5 and 15 on a volatile market, gold for example! if only you recognize the current trend of the market to check weather you buy and close on negative or to sell and close on positive, it does give you positive overall!
This is what you actually need to know, @milandaamji .
The sooner you come to appreciate that @tommor is right, and that everyone here who actually trades for a living agrees with him, the less time you’ll use up looking at things that don’t work. 
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Ooooh, I see what you’re trying to do! That sounds like a solid strategy: buying when the momentum is positive and above a 0.5% threshold, and selling when it’s negative and below -0.5%.
Now, about the Momentum Indicator in MT5, let me explain it in a way that’s not too stressful (because I know how confusing this stuff can get ):
But you didn’t?!
Are you an AI bot, or a person, Lee-Me?
It’s a terrible strategy. I guarantee nobody on here can describe a mechanical system based solely on one indicator that will be profitable in the long run.
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How does that net positive overall?
Buying the 5/15 or selling the 5/15 will net the same.
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Set the Momentum indicator to 5 periods, then buy when it’s above 100.5 and sell when it’s below 99.5—test on demo first.
just use the rsi it tells you when things are overbought or oversold and when its not going to work it looks different
So what should us newbies be focused on learning?
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remember people, just because someone says they do this doesnt mean they do. do your own thing
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RSI can sit OB or OS for long periods. I would add other signals to the mix.
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I’d say price action, market structure, support and resistance. And don’t fall into the (widespread) trap of imagining that anyone’s trading profitably over the long term by entering trades when two moving average lines cross each other.
If you’re an indicator enthusiast, or if you’re planning to try them, it’s also worthwhile being aware that the overwhelming majority of indicators were designed and constructed from daily charts and intended for use on daily charts.
So if you use them on faster charts than that, then to put it very mildly and politely you won’t be “seeing them at their best.”
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The Momentum Indicator essentially shows the market’s pace. If you look at a 5-period momentum, buying when it’s positive and selling when it’s negative can make sense. However, it’s important not to rely solely on one indicator. You should also consider other signals, such as support and resistance levels.
Momentum trading has various approaches. Some traders use a 0.5% momentum gauge, while others prefer a 5/15 moving average crossover.
For MT-5, try a 5-period setting, buying above 100.5 and selling below 99.5. Always test on a demo account first.
Back testing and adjusting settings are crucial to finding a strategy that suits your trading style.