The absolute strength histogram Forex indicator displays as a dual colored histogram and measures the absolute strength for any pair.
The indicator appears underneath the main MT4 activity chart.
It uses two methods to achieve this: the RSI method and Stochastic method.
How to trade with it?
- A long trade can be opened if the bar of the histogram turns back to green from red.
- A short trade can be opened if the bar of the histogram turns back to red from green.
Use the absolute strength histogram Forex indicator for short-term trading purposes.
For instance, it would fit scalping or day trading currency pairs.
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Absolute Strength Histogram Indicator Chart
Here’s an example of how the indicator should look like when loaded onto the Metatrader 4 chart.
You can apply the indicator to any currency pair and time frame of your preference.
Finding Buy and Sell Triggers With Absolute Strength Histogram Technical Analysis Chart Indicator
Below is an example of how to buy and sell currency pairs with this Forex indicator:
Buy Trigger: Open a fast buy trade when the indicator changes color from red to green. Make sure the overall trend is upward.
Place a stop loss below immediate support, or use your own stop loss strategy.
Close the trade for a fixed profit target, for example 12 pips on the 1-minute scalping chart. Don’t wait for any reversal signals to close the trade.
Sell Trigger: Open a fast sell trade when the indicator changes color from green to red. Make sure the overall trend is downward.
Place a stop loss above immediate resistance, or use your own stop loss strategy.
Close the trade for a fixed profit target, for example 30 pips on the 15-minute day trading chart. Don’t wait for any reversal signals to close the trade.
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Mode, length, smooth, signal, price, mode MA, mode histogram, colors, width, style.
The indicator can be used as a stand-alone signals indicator.
It can also be combined with:
- Trading oscillators (MACD, Stochastic, RSI,…)
- Trend indicators (Moving Average, Bollinger Bands, ADMI,…)
- Price action methods and techniques
More Info About This Indicator
Tradable Currency pairs: Any
Trading Platform: MT4
Time frames: M1, M5, M15, M30, H1, H4, D1, W1
Indicator Type: short-term trend
Copy and paste the indicator in the MT4 indicators data folder.
Then restart the MT4 terminal and attach it to any chart.