The ASH indicator for MetaTrader, also known as”the Absolute Strength Histogram (ASH), is a trend-following instrument that shows the bullish or bearish trend for an investment.
It is a delicate combination of Moving Averages Stochastic, RSI, and histogram bars. The red and the green moving averages serve as the signal lines. A bullish trend is shown in the event that the moving average of green crosses over the red moving average to the upside, and a bearish one is represented in the event that the moving average of red moves below the green on the other side.
In addition the histogram bars demonstrate the overall force that the current trend is exhibiting. Histogram bars in red and green represent a bearish or bullish momentum in turn. The indicator is ideal for intermediate, novice or advanced Forex traders. Additionally, it’s suitable for day traders.
However, it should not be used as a standalone trading instrument, but rather in conjunction with other technical indicators.
How To Trade With ASH Indicator
The image above illustrates how the indicator could appear on the chart of your MT4. The first thing to note is that the projected trendline could indicate a shift in the direction of the trend to bearish. The second signal line of the indicator is crossing over to the down side, which confirms that the trend is bearish.
In addition, the indicator creates red histogram bars, which suggest a bearish trend. If you meet the above circumstances, you can trade a short or sell position following a price action that has printed the bearish, engulfing candlestick.
The method above for trading entry should be highly recommended as it detects false signals and has a greater chance of winning than trading opening and closing in the event that the moving average crosses.
Conclusion
The ASH indicator used for MT4 is a trend-following and reversal instrument for entry into buy/sell positions. However, it’s not always recommended to enter an open buy/sell trade when moving averages cross paths with one another. This is because it can cause a number of losing trades because of the random movement of markets. It is also absolutely free to download.
Latest post
