PipFinite Energy Beam – A Powerful Tool for Momentum Trading
PipFinite Energy Beam is a momentum indicator for MetaTrader 4 and 5 designed to help traders identify strong trends and potential reversals. This versatile indicator functions as a filter to detect underlying momentum and can be used on any symbol and timeframe.
How Energy Beam Works
Energy Beam analyzes price action using an array of proprietary filters to calculate momentum. The indicator then plots colored beams on the chart to visualize the results:
- Blue Beam – Indicates bullish momentum; look for buying opportunities
- Red Beam – Indicates bearish momentum; look for selling opportunities
- Gray Beam – Neutral momentum; avoid trading
By default, Energy Beam uses 5 filters but this can be adjusted from 1 to 8 depending on your trading style. More filters mean increased confirmation at the cost of greater lag. Less filters equate to faster signals but with less reliability.
Key Features of Energy Beam
- Momentum analyzer – Accurately measures momentum using price action filters
- Visual filter – Beams clearly indicate bullish/bearish momentum on the chart
- Fully customizable – Adjust number of filters and colors
- Works on any symbol – Use Energy Beam on forex, indices, commodities, stocks etc.
- Optimized calculation – Analyzes price action at the close of each bar for accuracy
- No repainting – Signals do not change once plotted
Using Energy Beam for Momentum Trading
Energy Beam shines when using momentum strategies like trend following. Here are some ways traders can apply the indicator:
- Confirm trend direction – Use the beams to determine and stick with the prevailing trend. For example, only take long trades when seeing a blue bullish beam.
- Time entries – Enter trades in the direction of the beam shortly after a change in color. This captures momentum early in a new trend.
- Avoid choppy markets – Sit out or tighten stops when Energy Beam oscillates between red and blue.
- Filter other indicators – Require agreement between Energy Beam and other indicators before taking trades.
- Scan for trading opportunities – Quickly scan multiple charts for symbols showing strong momentum.
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Let’s look at two examples of Energy Beam in action on live market charts:
EURUSD Daily Chart
![Energy Beam EURUSD]
Here we see Energy Beam plotting a blue bullish beam as EURUSD begins an uptrend in late September 2017. Traders entering long positions in agreement with the blue momentum would have captured a nice ride higher in the ensuing months.
USDJPY Daily Chart
![Energy Beam USDJPY]
On this daily USDJPY chart, Energy Beam flips from blue to red in February 2018 as bearish momentum kicks in. Shorting the pair in alignment with the red beam produces a profitable downtrend. The indicator remains red as the downtrend extends into the spring.
Pros and Cons of Energy Beam
- Accurately measures momentum using proprietary price action filters
- Simple and intuitive trading signals
- Works across all symbols and timeframes
- Customizable settings to suit any trading style
- No repainting means high signal reliability
- Increased lag with more filters
- Can generate false signals in choppy or ranging markets
- Requires practice interpreting the momentum beams
PipFinite Energy Beam is a versatile momentum indicator that can serve as a visual filter for trend trading strategies. The colored beams clearly identify bullish and bearish momentum levels on any symbol and timeframe. While no indicator is perfect, Energy Beam is a powerful tool for timing entries and gauging market momentum when used properly. Adjusting the number of filters allows customization for different trading approaches. For momentum traders looking for high-probability signals, Energy Beam is worth testing out.