Momentum indicator on IQ OptionThe IQ Option platform has as many as 32 built-in indicators, which are classified as momentum indicators. Which of these is the best momentum indicator? Indicators provide assistance to traders in making decisions about opening and closing the positions. There are different types of them. This article is about the Momentum indicator popularized by the trader Martin Pring.

Yes, Pring's indicator is called Momentum and belongs to the group of momentum indicators. This causes a bit of a terminology mishmash, but we'll deal with it somehow.

What is the Momentum indicator?

The Momentum indicator is a tool that measures the current price and divides it by the closing price at the start of the settlement period. It is on the IQ Option offer and belongs to the momentum indicators group.

How to set the best Momentum indicator on the IQ Option chart

First, log in to your IQ Option account. Find the Chart analysis icon and click on it. The chart analysis window will appear with 3 tabs included. The first one contains indicators. You have to choose the group of momentum indicators. Then you will be able to see ‘Momentum' on the list that will unfold on the right side.

best momentum indicator
3 simple steps to find the Momentum indicator on IQ Option

You will then see the window with the indicator's settings. You may adjust the colour and the width of the Momentum line. You may also change its period depending on the timeframe and strategy you are using. For more advanced trading there is also a possibility to change the source, but I would recommend leaving it as default. It defines the value that the indicator is plotted by.

Settings window for Momentum indicator
Settings window for the best Momentum indicator

The Momentum will appear in a separate window beneath your price chart. It takes a form of a line that oscillates around the accepted value of the first closing price in the period marked as the 0 line.

How to trade with the best Momentum on IQ Option

Generally, the Momentum shows the difference between the first closing price and the current one. If the price declines in relation to the closing price from the n-period back, the indicator will drop below the 0 line. If the price rises, the indicator will grow together with it.

Before you open a trading position you must analyse the general market situation. Stay up-to-date with the news to predict price movements. Set the timeframe of your choice. Use two Momentum indicators with various periods to get the best results. The first one should be used as a confirmation of the present trend (period 20) and the second one as a signal line (period 3).

Go long with the Momentum

To open a long position with the help of two Momentum indicators you should assess the overall price movement. Look at the chart and check if the price is rising. Then see the Momentum with the period value of 20. If it moves above the middle line, you have received the confirmation of the uptrend. The last step is to catch the moment when the second Momentum with period 3 crosses the 0 line from the bottom to top and continue to rise.

long positions with two momentum indicators
Potential long positions with two Momentum indicators

Go short with the Momentum

In order to open a short position, you should spot the downtrend on the price chart. Confirm with the first Momentum (20). If it is moving below the 0 line, there is definitely a downtrend in the market. Now, wait for the second Momentum to cross the 0 line on its way down. These are the good points for you to open a short trade.

Potential short positions with two momentum indicators
Potential short positions with two Momentum indicators

Final words on the best Momentum indicator

Usually, the simplest indicators are the best. Our today's best Momentum indicator has this feature of simplicity. The indicator compares the data from now with the price data from the past in an easy calculation. Depending on the period of the indicator these comparisons will be more or less distant in time. Our hero today can also be used as the best momentum indicator for day trading. It works well on 1-minute, 5-minute charts and other popular time frames for day trading.

The best Momentum indicator is commonly used in many trading strategies. It is quite simple and it does not lag. Nevertheless, you should remember that there is no indicator or strategy that can guarantee success. To strengthen your winning chances you can combine the Momentum with another indicator such as the Bollinger Bands. Consider the exemplary chart below.

Momentum indicator with Bollinger bands
Momentum indicator combined with the Bollinger bands

The good news is there is a free demo account on the IQ Option platform. It is supplied with virtual cash and there is no time limit you can use it. This is a great place for you to test new indicators, different periods and combinations.

I encourage you to leave a comment in the comments section below. Tell us what is your best momentum indicator. I would be really glad to hear from you!

Wish you a good trading experience!


IQ option products like CFDs and options are investments that can be risky. This means that if you invest in them, you could lose your money quickly. In fact, 83% of people who invest in CFDs with this provider "IQ Option" lose money. You should make sure you understand how CFDs work and if you can afford to risk losing your money. Remember, this article is not giving you any advice about investing. Any information about what happened in the past or what could happen in the future is just an opinion and not guaranteed to be true. Including examples given in the content displayed.
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Bart Bregman

Author / IQ Option expert: "My name is Bart Bregman, I have 9 years of full-time professional trading experience. I've been trading with IQ Option for more than 7 years, mainly on the shorter time frames doing technical analyses, and have many experience with Binary Options, CFDs, Options, and Crypto trading. There is no such thing as a bad trade! As a digital nomad trader, I'm mostly traveling all over the world. Follow my journey on Instagram at "

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