The Absolute Strength Averages indicator for Metatrader 5 gauges the absolute trend strength and generates accurate buy and sell trading signals.
It includes some smoothing filters to make future trend predictions more precise.
Basic trading signals explained:
- A buy signal occurs when the green line crosses above the orange line.
- A sell signal occurs when the orange line crosses above the green line.
The Absolute Strength Averages indicator should work well in trending currency markets and less in range-bound market conditions.
The indicator offers the following inputs and parameters for customization: calculation method (RSI), calculation length (14), smoothing, signal smoothing, price, averaging method.
The indicator can be utilized for any trading instrument supported by the Metatrader 5 charting platform.
Make yourself familiar with this technical tool and test it first on a demo account before applying it to a real account.
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The picture below illustrates how the Absolute Strength Averages indicator looks like when applied to the MT5 chart.
How To Buy And Sell Pairs With The Absolute Strength Averages Indicator?
Find a simple trading strategy below:
- A buy signal is generated when the green colored line crosses the orange colored line bottom up.
- Place a stop order below the previous swing low region.
- Take profit method 1: close and reverse the trade when a sell signal gets displayed on the chart.
- Take profit method 2: exit the buy trade for a profit target of your preference.
- A sell signal is generated when the green colored line crosses the orange colored line top down (see chart example above).
- Place a stop order above the previous swing high zone.
- Take profit method 1: close and reverse the trade when a buy signal gets displayed on the chart.
- Take profit method 2: exit the sell trade for a profit target of your preference.
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Frequently Asked Questions
How Do I Install This Custom Indicator On Metatrader 5?
- Open the MT5 trading platform
- Click on the File menu button located at the top left part of the platform
- Click on Open Data Folder > MQL5 folder > Indicators
- Copy the absolute_strength_-_averages.mq5 indicator file in the Indicators folder
- Close and restart the trading platform
- You will find the indicator here (Navigator window > Indicators)
- Drag the indicator to the chart to get started with it!
How Do I Edit This Indicator?
- Click in the open chart with your right mouse button
- In the dropdown menu, click on Indicator List
- Select the indicator and click on properties
- Now you can edit the inputs, colors, levels, scale and visualization
- Finally click the OK button to save the new configuration