Introduction to the Absolute Strength Histogram Indicator
The Absolute Strength Histogram Indicator is a trend-following forex indicator providing, as the name suggests, information on the strength of a trend. With help of that histogram indicator, a forex trader quickly knows who has control over the market for the present moment and in past.
The Absolute Strength Histogram Indicator fits all kinds of timeframes and currency pairs. It is displayed in a separate window placed just below the main trading chart. The default settings can be modified directly from the input tab. Feel free to experiment with the settings and parameters to fit your personal preferences.
How does it work? How to apply in trading?
Trading Rules Explanation
The Absolute Strength Histogram Indicator is a kind of supplementary tool. Therefore, in the examples below, we have combined the Absolute Strength Histogram with the 100 Exponential Moving Average to define an overall trend. Then we utilize pullback trading in the direction of the general market trend.
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
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
As always, to achieve good results, remember about proper money management. To be a profitable trader you need to master discipline, emotions, and psychology. It is crucial to know when to trade, but also when not to trade. Avoid trading during unfavorable times and market conditions like low volume/volatility conditions, beyond major sessions, exotic currency pairs, wider spread, etc.
How to set up the Absolute Strength Histogram indicator in MetaTrader (MT4)?
Download the Absolute Strength Histogram.rar archive at the bottom of this post, unpack it, then copy and paste the Absolute Strength Histogram.ex4 or Absolute Strength Histogram.mq4 indicator files into the MQL4 folder of the Metatrader 4 trading platform.
You can gain access to this folder by clicking the top menu options, which goes as follows:
File > Open Data Folder > MQL4 > Indicators (paste here).
Now go to the left side of your MT4 terminal. In the Navigator find the gauge name, right-click it and select Attach to the chart.
The Absolute Strength Histogram indicator is well worth adding to your trading collection. A good forex indicator will most probably enhance your chance of success. Nonetheless, remember about having realistic expectations. Just like any other technical analysis tool, is not capable of providing accurate signals 100% of the time. Thus, this forex indicator provides false signals occasionally. Its performance will vary significantly depending on market conditions. Feel free to develop your own trading system based around it. Don’t forget that we still have more great free forex MT4 indicators to download and try.
Download Free Forex MT4 Absolute Strength Histogram Indicator
To download the Absolute Strength Histogram Indicator for Metatrader 4 (MT4) for free just click the button below: