Absolute Strength Histogram Indicator

Platform: MT4 Type: Momentum

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Last update: October 19, 2024

The Absolute Strength Histogram Indicator for MT4 is a trend-following forex gauge providing, as the name suggests, information on the strength of a trend. With help of that histogram, a forex trader quickly knows who has control over the market for the present moment and in the past.

How to apply the Absolute Strength Histogram in trading?

The Absolute Strength Histogram Indicator is a kind of supplementary tool. Therefore, in the examples below, we have combined it with the 100 Exponential Moving Average to define an overall trend. Then we utilize pullback trading in the direction of the general market trend.

Buy Signal

Follow these steps for a long trade:

Price is above 100 EMA
Candles make a pullback
Open long trade when the Absolute Strength Histogram bars switch from red to green
Set stop loss few pips below the last market low
Take profit or exit trade when the Absolute Strenght Histogram Indicator provides first red bar

Absolute Strength Histogram Indicator Example of Buy Trade

Sell Signal

Follow these steps for a short trade:

Price is below 100 EMA
Candles make a pullback
Open short trade when the Absolute Strength Histogram bars switch from green to red
Set stop loss few pips above the last market high
Take profit or exit trade when the Absolute Strenght Histogram Indicator provides first green bar

Absolute Strength Histogram Indicator Example of Sell Trade