Absolute Strength Histogram Metatrader 4 Forex Indicator
The Absolute Strength Histogram MT4 forex indicator draws buy/sell colored histogram bars in a separate Metatrader 4 window.
The histogram bars are based on a mix of trend strength and a moving average.
Green absolute histogram price bars indicate the trend is bullish and currency traders look for buy trade opportunities.
Red absolute histogram price bars indicate the trend is bearish and currency traders look for sell trade opportunities.
For more reliable trading signals, combine the Absolute Strength Histogram with a trend following indicator, for example the 100 simple moving average would be a good choice.
Trade in the direction of the underlying trend and avoid trading against the trend.
Works for scalping, day trading and swing trading purposes.
Feel free to experiment with the default indicator settings.
The EUR/USD Hourly chart below displays the Absolute Strength Histogram Metatrader 4 Forex indicator in action.
Basic Trading Signals
Signals from the Absolute Strength Histogram MT4 forex indicator are easy to interpret and goes as follows:
Buy Signal: Initiate a new buy trade when the Absolute Strength Histogram forex indicator changes from red histogram bars to green histogram bars.
Sell Signal: Initiate a new sell trade when the the Absolute Strength Histogram forex indicator changes from green histogram bars to red histogram bars.
Trade Exit: Close the open buy/sell trade when an opposite signal occurs, or use your own method of trade exit.
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: Chart pattern indicator
Customization options: Variable (Mode, Length, Smooth, Signal, Mode MA) Colors, width & Style.
Time frames: 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month
Type: Histogram Trend
Copy and paste the absolute-strength-histogram.mq4 into the MQL4 indicators folder of the Metatrader 4 trading platform.
You can access this folder from the top menu as follows:
File > Open Data Folder > MQL4 > Indicators (paste here)