About the Ashi Trend Signal Indicator
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.
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Download the “shin-ne-ashi.mq4” MT4 indicator
Key Features
- Trend-following logic based on Ashi calculations.
- Clear buy and sell arrows in a separate indicator window.
- Blue arrows for bullish signals.
- Red arrows for bearish signals.
- Effective across multiple timeframes with trend filtering.
Indicator Chart
The chart displays the Ashi Trend Signal Indicator in a lower window beneath price action. Arrows appear when trend conditions shift.
Traders use the chart to time entries in the direction of momentum while keeping the main price chart uncluttered.
Guide to Trade with Ashi Trend Signal Indicator
Buy Rules
- Confirm the broader trend using a longer-period trend indicator.
- Wait for the Ashi Trend Signal to plot a blue arrow.
- Open a buy trade after the signal candle closes.
- Take only buy signals that align with the main trend.
Sell Rules
- Confirm the broader trend using a longer-period trend indicator.
- Wait for the Ashi Trend Signal to plot a red arrow.
- Open a sell trade after the signal candle closes.
- Avoid sell signals against bullish trend conditions.
Stop Loss
- Set the stop loss beyond a nearby technical level.
- Place the stop outside recent consolidation zones.
- Allow enough room for normal price fluctuation.
- Control risk through position sizing.
Take Profit
- Close the trade when an opposite arrow signal appears.
- Use key support or resistance levels as profit targets.
- Hold positions longer during strong trend phases.
Ashi Trend Signal and Supertrend MTF Indicator Forex Day Trading Strategy
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.
Download Now
Download the “shin-ne-ashi.mq4” Metatrader 4 indicator
FAQ
Which timeframes are best for the Ashi Trend Signal Indicator?
The indicator performs strongest on H1, H4, and D1 charts. Lower timeframes require additional trend filtering.
Can this indicator be used for scalping?
Yes, but it should be combined with a higher-timeframe trend indicator to reduce false signals.
Is the Ashi Trend Signal suitable for beginners?
Yes, the arrow-based signals are easy to interpret and require minimal chart analysis.
Summary
The Ashi Trend Signal Indicator offers traders a clean and focused way to trade trends using arrow-based signals.
By applying Ashi logic, it smooths price action and highlights momentum shifts with minimal distraction.
Its strength lies in higher-timeframe trading, where trends are more defined and signals are more reliable.
On lower timeframes, combining it with a longer-term trend indicator improves accuracy and trade selection.
