How to trade properly with Intraday Momentum Index?

What is Intraday Momentum Index?

Intraday Momentum Index (Imi) is a trend indicator that is used to find the possible buy and sell signals.

This Indicator is the combination of candlestick analysis plus RSI, in order to generate the possible overbought and oversold levels.

This indicator was developed by Tushar Chande.

According, to the experts we should always use an alternative indicator in combination with (Imi) to gain better results.

How does Intraday Momentum Index work?

Here, to illustrate Intraday Momentum Index. I am going to use IQ Option.

In case you don’t have an IQ Option account. click here.

You can sign up via the given below.

You can sign up here try….

Once you click the above you will land on the IQ Option homepage.

Now, fill in your details like your mail, password & hit try now.

Once you have signed up you will land on the IQ Option dashboard.

Firstly, click on the chart button and select candle from the menu.

Secondly, click on the indicator button and select Imi from the menu.

That’s it!! the basic setup is over.

How to Trade with Intraday Momentum Index?

Trading with Intraday Momentum Index is very easy.

You just remember the golden rule of the Imi:

If the Imi line is near the overbought level. then we should go for a Sell trade.

Similarly, If the Imi line is near the oversold level. then we should go for a buy trade.

Let’s check few examples:

Given above is a 2 hour chart and we can clearly see that the Imi line is near the oversold level.

So, here we can take a buy trade.

Given above is a 2 hour chart and we can clearly the Imi line near the overbought level.

So, here we can take a Sell trade.

How Reliable is Intraday Momentum Index?

Intraday Momentum Index is a highly reliable Indicator.

However, If you want to gain better results you should Support and Resistance to confirm your trade.

While using Support and Resistance, you should remember that If the Imi line is near the overbought level plus If the candlestick is near the resistance level. then we should go for a Sell trade.

Similarly, If the Imi line is near the oversold level plus If the candlestick is near the support level. then we should go for a buy trade.

Let’s check few examples:

Given above is a 2 – hour chart and we can clearly see that the Imi line is near the oversold level plus the candle is near the support level.

So, here we can take a buy trade.

Given above is a 2 – hour chart and we can clearly see that the Imi line is near the overbought level plus the candle is near the resistance level.

So, here we can take a sell trade.

Final Point:

Intraday Momentum Index is one of the most popular trading indicators used by traders to identify the possible buy and sell signals.

This indicator was developed by Tushar Chande.

His main goal was to bring strong buy and sell calls than RSI by using candlestick analysis and RSI.

You can easily quick bucks from this indicator.

However, If you want to reap the real results from this indicator you should combine it with Support and resistance.

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