Absolute Strength Histogram Indicator

Absolute Strength Histogram Indicator

Absolute strength histogram indicator for MT4 gives histogram based BUY and SELL forex trading signals and trend strength.

The Absolute strength histogram indicator for MT4 shows the trend strength. Furthermore, it provides BUY and SELL forex trading signals based on the BULLISH and BEARISH signal line crossovers. Additionally, it shows the magnitude of the trend strength so traders can use the indicator to exit if the trend is weakening.

The indicator is good for new and advanced forex traders. New forex traders can easily identify the Bullish and Bearish price trends. The Buy and Sell trading signals are easy to identify and trade. On the other hand, advanced traders can use the trend strength values and confirm using trend lines, channels, and support resistance lines. The indicator works on all intraday chart frames and daily, weekly, and monthly price charts.

Absolute Strength Histogram Indicator For MT4 Trading Signals

The above EURJPY H1 chart shows the Absolute strength histogram indicator for MT4 in action. The indicator shows the Bullish histogram and the Bullish signal line in GREEN. Similarly, it shows the Bearish histogram and the Bearish signal line in RED. Moreover, the indicator is shown in a separate indicator window.

The entry signal consists of two parameters first the histogram color, second the crossover of the signal lines. If the Histogram color changes to GREEN and if the GREEN Bullish signal line crosses over the RED Bearish signal upwards it indicates the beginning of a Bullish market. So, forex traders can enter a BUY position with a stop loss below the previous swing low. Technical traders can continue to hold the BUY positions as long as the histogram color stays GREEN and the GREEN signal line is above the RED one. Upon opposite crossover signal of the signal lines and the appearance of the opposite color of histogram it indicates the end of the trend. So, forex trend traders can exit the positions with-profits

Similarly, if the histogram changes color to RED and if the RED signal line crosses over the GREEN signal line upwards. Then forex traders can consider the beginning of the bearish price trend and place a SELL trade. The best stop loss is above the previous swing high. Since the indicator is good for trend following forex traders can hold the positions until an opposite crossover.

The height of the histogram bars shows the strength of the trend. So traders can gauge the strength of BUYERs and SELLERS in the market and decide to exit or hold the positions. Furthermore, the changing heights of the histogram bars show if the current trend strength is gaining or slowing down. Traders can use this information for detailed technical analysis with price action for additional confirmation.

Conclusion
The Absolute strength histogram indicator for MT4 is a versatile indicator that provides entry and exit signals. Furthermore, it provides the measure of the trend strength and helps the traders to exit accordingly. Moreover, forex traders can download the indicator for free and install it with ease.