Absolute Strength Forex Crossover System Indicator (MT4)

About the Absolute Strength Forex Crossover System Indicator

The Absolute Strength Forex Crossover System Indicator in MT4 combines two strength-based oscillators to identify high-confidence crossover trades.

Designed for clarity and speed, it helps traders detect momentum shifts and aligns entries with underlying trend strength.

Key Features

• Dual-strength oscillators: Measures momentum from both price and market strength inputs
• Clear crossover arrows: Visual up/down arrows signal possible entries
• Adjustable settings: Customize periods, alert types, colors, and thresholds
• Multi-timeframe capability: Efficient on M5 through H4 charts for swing or intraday trades
• Non-repainting design: Signals remain intact once generated

How It Works

1. Strength calculation: The Indicator tracks two proprietary strength values over time
2. Crossover detection: When the fast-strength line crosses the slow-strength line, a signal arrow appears
3. Alert output: Optional pop-ups, email, or push alerts when crossovers occur

Free Download

Download the “absolute-strength-indicator.mq4” indicator for MT4

Benefits of Using This Indicator

• Identifies momentum shifts cleanly as oscillators cross
• Reduces false entries through strength-based confirmation
• Adaptable to different trading styles and timeframes
• Fixed signals support backtesting and confidence
• Streamlines decision-making with visual overlays

Indicator Example Chart (EUR/USD H4)

How to Trade Using This Indicator

Entry Signals

• Buy Signal: Fast-strength crosses above slow-strength → bullish
• Sell Signal: Fast-strength crosses below slow-strength → bearish

Stop‑Loss & Take‑Profit Guidelines

• Stop‑Loss: Place just beyond recent swing extremes (5–10 pips buffer)
• Take‑Profit: Aim for next support/resistance, or use a 2:1 reward-to-risk ratio; consider trailing based on a slower strength line

Example Trade Setup

1. EUR/GBP H1: Fast-strength crosses below slow → red arrow appears → Sell signal.
2. Enter Sell at the close of the signal candle.
3. Stop‑Loss just above the recent swing high (~10 pips buffer).
4. Take‑Profit near next support or aim for 2:1 R/R.

Download Now

Download the “absolute-strength-indicator.mq4” indicator for Metatrader 4

Absolute Strength Crossover + ADX with DeMarker Signal Strategy for MT4

This strategy merges the powerful trend and momentum detection of the Absolute Strength Forex Crossover System Indicator with the combined trend strength and overbought/oversold analysis of the ADX with DeMarker Forex Signal Indicator.

The goal is to generate high-probability trade signals by confirming trend direction, momentum shifts, and market conditions before entering.

What is this Strategy About?

The Absolute Strength Crossover System uses crossover signals of strength indicators to identify emerging trend changes or momentum shifts.

It provides clear buy and sell signals based on the relative strength of bulls and bears.

The ADX with DeMarker Indicator combines the Average Directional Index (ADX), which measures trend strength, with the DeMarker oscillator that identifies potential overbought or oversold conditions, offering additional filtering for entries and exits.

By trading signals from the Absolute Strength Crossover only when the ADX confirms a strong trend and the DeMarker oscillator supports momentum (not in extreme overbought/oversold zones), traders can avoid false breakouts and increase their winning chances.

Buy Setup Rules

• Wait for a bullish crossover signal from the Absolute Strength Indicator (bull strength crossing above bear strength).
• Confirm the ADX value is above 25, indicating a strong trend, from the ADX with DeMarker Indicator.
• Ensure the DeMarker oscillator is not in overbought territory (below 0.7) to avoid entering at exhaustion.
• Enter a buy trade on the candle following the confirmation.
• Stop Loss: Place below the recent swing low or key support.
• Take Profit: Use a 1:2 risk-reward ratio or trail stops as price advances.

Sell Setup Rules

• Look for a bearish crossover signal on the Absolute Strength Indicator (bear strength crossing above bull strength).
• Confirm ADX above 25 for a strong downtrend via the ADX with DeMarker Indicator.
• Verify that the DeMarker oscillator is not in oversold territory (above 0.3), preventing premature entries.
• Enter a sell trade after these conditions align.
• Stop Loss: Set above the recent swing high or resistance level.
• Take Profit: Aim for a 1:2 or higher risk-reward ratio or exit on reversal signals.

Advantages of the Strategy

• Combines trend direction, strength, and momentum filters for precise entries.
• Reduces false signals by avoiding trades in weak or overextended markets.
• Clear crossover signals simplify decision-making.
• Suitable for multiple timeframes, including M30, H1, and H4.

Drawbacks

• May miss some early trend entries due to conservative filters.
• Less effective in very choppy or range-bound markets.
• Requires attention to multiple indicator values, which can be overwhelming for beginners.

Conclusion

The Absolute Strength Crossover + ADX with DeMarker Strategy provides a robust method for trading strong trends with momentum confirmation and overextension checks.

It is ideal for traders who prefer structured, rule-based systems that emphasize trend quality and momentum.

Testing this strategy on demo accounts before live trading is highly recommended to adjust settings to your preferred market conditions.

Back‑Test Insights, Pros & Cons

Back‑Test Results

• Strong performance in trending markets with sustained momentum
• Win rate ~60–87% when combined with basic risk management

Pros

• Momentum-based crossovers reduce noise
• Clear entry signals with non-repainting arrows
• Customizable across asset classes and timeframes

Cons

• May lag in fast-moving, news-driven moves
• Potential false signals in sideways conditions
• No auto exit—user must manage SL/TP manually

Indicator Specifications

Final Words

The Absolute Strength Forex Crossover System Indicator provides a momentum-weighted crossover tool that blends clarity and power.

When used with sound stop-loss and take-profit rules and basic trend context, it becomes a solid addition to any MT4 arsenal.

Ideal for traders seeking momentum-confirmed entries.