ASH Indicator

ASH Indicator

ASH indicator for MT4 is a trend momentum and reversal tool for buy/sell entries. Try now. Free to download!

The ASH indicator for MetaTrader, otherwise known as the Absolute Strength Histogram (ASH), is a trend-following tool that displays the bullish/bearish momentum of an asset.

The indicator is a fine blend of the moving averages, Stochastic, RSI, and histogram bars. The green and red moving averages are the signal lines. A bullish move is depicted when the green moving average crosses over the red to the upside, while a bearish move is depicted when the red moving average crosses below the green to the downside.

Furthermore, the histogram bars show the overall strength of the trend. Green and red histogram bars depict a bullish/bearish momentum, respectively. The indicator is suited for novice, intermediate, and advanced forex traders. Besides, it is also ideal for scalpers and day traders.

However, the indicator is not recommended to be used as a stand-alone trading tool but rather in synergy with price action/other technical indicators.

How To Trade With ASH Indicator

The above screenshot depicts how the indicator would look on your MT4 chart. First, the projected trendline shows a possible change in the trend direction to bearish. Secondly, the red signal line of the indicator also crosses over to the downside, which further confirms the trend direction as bearish.

Furthermore, the indicator also paints red histogram bars, which also posited a strong bearish momentum. With the above conditions, you may then open a sell/short position after price action printed a bearish engulfing candlestick.

The above method of trade entry is highly recommended because it checks false signals and has more winning rate than opening/closing trades when the moving average crossover.

Conclusion
The ASH indicator for MT4 is a trend momentum and reversal tool for buy/sell entries. However, it is not always advisable to open a buy/sell position anytime the moving averages cross over each other. This is because it may sometimes lead to several losing trades due to random market movement. Finally, it is free to download.