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Inertia indicator is one of the most accurate momentum indicators. It has appeared in the (Stocks & Commodities) magazine in the issue of September 1995.
From the physics realm, the term inertia has been taken, describing the mass and direction of motion.
The name itself (Inertia) has been chosen by the Donald Dorsey who introduced the indicator. He declared that the trend is simply (outward result of inertia).
Now, dear reader let`s forget about the terminology of our indicator and move with me directly to the point, but first of all I want to ask you, do you trade momentum?
If you do, join us and we will study together the performance of (Inertia) on the charts.
We know that, the momentum of a currency trading is based on its volatility and therefore inertia has a scale of measurements from (0) level to (100), while (50) is the middle level.
If the indicator reading is above 50, then it is a positive sign and when it is below 50, then the bearish sign is indicated.
See the images of the daily chart for EUR/USD pair below to judge yourself if it is useful to use inertia or not?
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