The ASC Trend Bar MT4 indicator is a simplified variation of the traditional ASC buy/sell signal arrows technical indicator.
This variation draws bullish and bearish trend bars on the chart.
Aqua colored bars are considered bullish and magenta bar bearish.
Use the ASC Trend Bar indicator in agreement with other technical indicators or analysis tools.
It works pretty good when combined with the 100 exponential moving average.
Only trade in the direction of the underlying trend.
Trend upward? Only trade the aqua signals from the ASC Trend Bar MT4 indicator.
Trend downward? Only trade the magenta signals from the ASC Trend Bar MT4 indicator.
Free Download
Download the “asc-trend-indicator-2.mq4” MT4 indicator
Indicator Chart (GBP/USD D1)
The GBP/USD daily chart below displays the ASC Trend Bar Metatrader 4 Forex indicator in action.
Basic Trading Signals
Signals from the ASC Trend Bar MT4 forex indicator are easy to interpret and go as follows:
Buy Signal: Open long trade when the ASC Trend Bar MT4 indicator draws an Aqua bar on the chart (bullish).
Sell Signal: Open short trade when the ASC Trend Bar MT4 indicator draws a Magenta bar on the chart (bearish).
Trade Exit: Close the open buy/sell trade when an opposite signal occurs, or use your own method of trade exit.
ASC Trend Bar + Alpha Trend Spotter MT4 Forex Scalping Strategy
This MT4 scalping strategy combines the ASC Trend Bar MT4 indicator and the Alpha Trend Spotter MT4 indicator.
The ASC Trend Bar signals entries with Aqua bars for bullish momentum and Magenta bars for bearish momentum.
The Alpha Trend Spotter provides trend confirmation with vertical lines: green for bullish trends and red for bearish trends.
This strategy is suitable for scalping on M1 and M5 charts and works best with major and cross currency pairs during active intraday movement.
Buy Entry Rules
- The ASC Trend Bar draws an Aqua bar, indicating bullish momentum.
- The Alpha Trend Spotter draws a green vertical line, confirming a bullish trend.
- Enter a long trade immediately after the Aqua bar closes and the green line is visible.
- Place a stop loss a few pips below the most recent swing low or the Aqua bar low.
- Take profit at 8–15 pips for M1 charts or 15–25 pips for M5 charts, or use a trailing stop while the Aqua bars continue and the green line remains.
Sell Entry Rules
- The ASC Trend Bar draws a Magenta bar, indicating bearish momentum.
- The Alpha Trend Spotter draws a red vertical line, confirming a bearish trend.
- Enter a short trade immediately after the Magenta bar closes and the red line is visible.
- Place a stop loss a few pips above the recent swing high or the Magenta bar high.
- Take profit at 8–15 pips for M1 charts or 15–25 pips for M5 charts, or trail stop while Magenta bars continue and the red line remains.
Advantages
- Quick scalping signals suitable for M1 and M5 charts.
- Combines momentum (ASC Trend Bar) and trend confirmation (Alpha Trend Spotter) to reduce false entries.
- Clear stop loss and take profit levels based on bars and trend lines.
- Works on multiple pairs, including EURUSD, GBPUSD, USDJPY, and AUDUSD.
- Easy to follow and suitable for both beginners and experienced scalpers.
Drawbacks
- Fast-moving markets require quick execution; delays may result in missed opportunities.
- Vertical trend lines may appear slightly after momentum change, causing minor delays in confirmation.
- High frequency of trades can be mentally demanding and lead to overtrading.
- Requires discipline to avoid entering trades when bars and trend lines are misaligned.
Example Case Study 1 (EURUSD M1 bullish scalp)
On EURUSD M1, the ASC Trend Bar drew an Aqua bar at 1.1052.
The Alpha Trend Spotter displayed a green vertical line, confirming a bullish trend.
A buy trade was entered immediately at 1.1053. Stop loss was placed at 1.1048, 5 pips below.
Price moved up to 1.1065, capturing 12 pips before partial profit was taken.
The Aqua bars continued forming and the green line remained, allowing the trade to gain an additional 6 pips.
Example Case Study 2 (GBPUSD M5 bearish scalp)
On GBPUSD M5, the ASC Trend Bar drew a Magenta bar at 1.2655.
The Alpha Trend Spotter displayed a red vertical line, confirming a bearish trend.
A short trade was entered at 1.2654. Stop loss was placed at 1.2660, 6 pips above.
Price dropped to 1.2635, netting 19 pips before partial exit.
The Magenta bars and red line continued, confirming sustained bearish momentum.
Strategy Tips
- Trade during active sessions to maximize movement and scalping opportunities.
- Only take trades where the ASC Trend Bar and Alpha Trend Spotter align to avoid false entries.
- Use tight spreads brokers for M1 and M5 scalping to reduce slippage.
- Consider partial exits when the price reaches half the target while leaving the remainder to run with trend confirmation.
- Monitor major support and resistance levels to avoid entering trades near strong reversal zones.
- Skip trades during major news events to prevent unexpected spikes from hitting stop loss.
- Adjust stop loss and take profit based on pair volatility and time of day.
- Focus on high liquidity pairs like EURUSD, GBPUSD, USDJPY, and AUDUSD for better execution.
- Use higher time frame trend analysis to filter scalping entries and improve win rate.
- Wait for confirmation of bar color and vertical trend line alignment before entering trades to minimize risk.
Download Now
Download the “asc-trend-indicator-2.mq4” Metatrader 4 indicator
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: Chart pattern indicator
Customization options: Variable (Risk, CountBars) 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
