ASO Indicator

ASO Indicator

The ASO indicator for MT4 shows the direction of the trend and also delivers buy/sell signals.

The ASO indicator for MetaTrader 4 is otherwise known as the Average Sentiment Oscillator indicator. It is a trend-following oscillator that shows the sentiment of the market and also delivers buy/sell signals.

The indicator is built with two lines (of different colors) that are used to indicate the trend direction and potential trend reversal. Furthermore, the 50.00 level of the indicator is used to determine whether a trend sentiment is bullish or bearish. Therefore, the market is said to be bullish when the royal blue line is above the 50.00 level. Similarly, a bearish trend is indicated when the red line is also above the 50.00 level.

Moreover, the indicator also suggests that a trend may likely reverse when the red and royal blue lines cross over. However, you may need to refer to price action/other indicators to find a suitable trade entry zone.

Buy/Sell Signals of the ASO Indicator for MT4

The above image shows how the ASO indicator would look on your MT4 chart. As stated earlier, the indicator signals a bullish/bearish trend when either the royal blue or the red line is above the level-50.00.

Therefore, a buy signal is generated when the royal blue crosses the red line from below to the upside and stays above level-50.00. Similarly, the indicator suggests a possible selling opportunity when the red line crosses the royal blue line from below to the upside and remains above level-50.00.

Furthermore, you may set a predefined take profit, while the stop loss is recommended to be above the recent highs. Besides, you may also break even after a few positive pips and then trail your stop loss for as long as the royal blue/red line remains above the level-50.00 for a buy or sell position, respectively.

Conclusion
The ASO indicator for MT4 is one of the most accurate trend detectors in the market that suits both beginners and advanced forex traders. What’s more, the signals are pretty easy to understand, and it is also free to download.