Introduction to the Adaptive Relative Strength Index Smoothed Indicator
The Adaptive Relative Strength Index Smoothed is a popular trend-following forex indicator.
It uses a set of moving averages based on RSI and plots a trend cloud near the price bars directly on the main chart window.
Usually, when price holds its position above the cloud it signals the bullish trend. Similarly, when the price tends to stay below the cloud it means the current trend is bearish.
All you need to do is, look for a solid bullish candle right above the cloud as a buy signal or a solid bearish candle right below the cloud as a sell signal.
We suggest to use it as a filter for opening and exiting transactions. Go ahead and add it to your best trading system.
It fits all kinds of timeframes and currency pairs.
The default indicator settings can be modified directly from the input tab. Feel free to experiment with the settings and parameters to fit your personal preferences.
How to set up the Adaptive Relative Strength Index Smoothed indicator in MT4?
Copy and paste the adaptive-relative-strength-index-smoothed.mq4 or adaptive-relative-strength-index-smoothed.ex4 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, that 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.
Click the link below:
The Adaptive Relative Strength Index Smoothed indicator is well worth adding to your trading collection but remember about having realistic expectations. Just like any other technical analysis tool, is not capable of providing accurate signals 100% of the time. Thus, it will provide false signals occasionally. Its performance will vary significantly depending on market conditions. Feel free to develop your own trading system based around it.