The Ashi Trend Signal indicator for MT4 is a trend following indicator based on the popular Ashi technical indicator.
This indicator draws buy and sell trading arrows in a separate window below the activity chart.
A blue arrow to buy and a red arrow to sell.
As a standalone forex indicator, the Ashi Trend Signal tends to provide more reliable signals on the higher timeframes such as the H1, H4, and D1.
For day trading and scalping purposes (M1, M5, M15 charts), it’s in your own interest to combine the Ashi Trend with a longer period trend following indicator.
Examples include: moving averages, exponential moving averages, ADMI, Bollinger Bands,…
Trade in the overall direction of the trend as indicated by the longer period trend following indicator.
Free Download
Download the “shin-ne-ashi.mq4” MT4 indicator
Indicator Chart (EUR/USD D1)
The EUR/USD D1 chart below displays the Ashi Trend Signal forex indicator in action.
Basic Trading Signals
Signals from the Ashi Trend Signal forex MT4 indicator are easy to interpret and goes as follows:
Buy Signal: Open buy position when the indicator draws a blue arrow on the chart (bullish).
Sell Signal: Open sell position when the indicator draws a red arrow on the chart (bearish).
Trade Exit: Close the open trade when an opposite signal occurs, or use your own method of trade exit.
Ashi Trend Signal and Supertrend MTF Indicator Forex Day Trading Strategy
Introduction
This MT4 day trading strategy combines entry signals from the Ashi Trend Signal Metatrader 4 Forex Indicator with trend confirmation from the Supertrend MTF Forex Signal Indicator MT4.
The Ashi Trend Signal paints blue arrows for buy entries and red arrows for sell entries, while the Supertrend MTF uses a green line to indicate bullish trend conditions and a red line to indicate bearish trend conditions.
By taking trades that align with both the trend direction and the entry signal, traders can focus on higher probability intraday moves.
This strategy works well on the M5, M15, and H1 charts and is suitable for day trading.
The Supertrend MTF provides a reliable trend filter so that entries come only when the market is moving in a defined direction.
The Ashi Trend Signal gives precise entry timing once the trend has been confirmed.
This dual confirmation approach helps reduce false entries and improve overall trade quality.
Buy Entry Rules
- The Supertrend MTF line must be green, confirming a bullish trend.
- Wait for a blue buy arrow from the Ashi Trend Signal indicator.
- Enter a buy trade at the close of the candle where the blue arrow appears while the Supertrend line remains green.
- Place the stop loss below the most recent swing low or below a nearby support level.
- Set take profit at a recent resistance level, session high, or a fixed target such as 15–30 pips depending on the timeframe.
- Exit the trade early if the Supertrend MTF line turns red or a red Ashi arrow appears.
Sell Entry Rules
- The Supertrend MTF line must be red, confirming a bearish trend.
- Wait for a red sell arrow from the Ashi Trend Signal indicator.
- Enter a sell trade at the close of the candle where the red arrow appears while the Supertrend line remains red.
- Place the stop loss above the most recent swing high or above a nearby resistance level.
- Set take profit at a recent support level, session low, or a fixed target depending on the timeframe.
- Exit the trade early if the Supertrend MTF line turns green or a blue Ashi arrow appears.
Advantages
- Combines trend confirmation and precise entries to improve trade quality.
- Simple trading signals make it easy to spot trade setups on lower timeframes.
- Applicable to multiple timeframes such as M5, M15, and H1, offering flexibility for different intraday styles.
- Helps avoid countertrend entries by requiring trend alignment before entry.
- Can be applied to a variety of currency pairs for frequent trade opportunities.
Drawbacks
- The strategy may generate late entries during rapid trend reversals, reducing potential profits.
- Frequent small fluctuations in price can trigger false signals on lower timeframes.
- Traders may experience drawdowns if multiple trades occur against sudden market spikes.
- Requires discipline to avoid entering trades when trend and signal indicators are not fully aligned.
Case Study 1
On USDJPY M5 during the London session, the Supertrend MTF line was green, indicating a bullish trend.
A blue arrow appeared from the Ashi Trend Signal after a minor pullback.
A buy trade was executed and later closed for 18 pips when price approached a nearby resistance level and the Supertrend line showed early signs of weakening, capturing the intraday upward move.
Case Study 2
On GBPUSD M15 during the New York session, the Supertrend MTF line was red, confirming bearish conditions.
A red Ashi arrow formed after a small retracement.
A sell position was initiated and successfully exited for 56 pips as the price approached the session low, with the Supertrend line starting to show signs of a possible trend reversal, capturing the key intraday decline.
Strategy Tips
- Only take Ashi Trend Signal entries that align with the Supertrend MTF direction to increase the likelihood of success.
- Use the M5 timeframe for faster intraday entries, M15 for balanced trades, and H1 for capturing larger session moves.
- Check the higher timeframe direction to ensure you are trading with the broader market trend for added confidence.
- Consider partial profit-taking near support or resistance zones while letting the rest of the position run if the trend remains strong.
- Keep a trading log to track which pairs and session times produce the most reliable setups.
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Download the “shin-ne-ashi.mq4” Metatrader 4 indicator
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: chart pattern
Customization options: Variable (nShinNe, nBar, bAlert) Colors, width & Style.
Time frames: 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month
Type: Trend
