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Introduction to the ASH Indicator

This indicator is based on the Absolute Strength Index Oscillator which was originally developed by Tudor Marcelin. It was developed to help traders identify momentum and trend directions objectively using an oscillator type of indicator.

What is the ASH Indicator?

The Absolute Strength Histogram Indicator or ASH Indicator is a momentum indicator which is derived from the Absolute Strength Oscillator (ASO). It is also an oscillator type of technical indicator which calculates for the difference between the bulls power and the bears power and presents the difference as histogram bars. It is also derived from the Relative Strength Index (RSI) or the Stochastic Oscillator.

This indicator plots histogram bars which oscillate on an open range around its midline, which is zero. Positive bars indicate a bullish trend bias, while negative bars indicate a bearish trend bias.

The color of the bars also changes depending on the short-term momentum direction. It plots blue bars to indicate a bullish momentum, red bars to indicate a bearish momentum, and gray bars to indicate periods with no clear momentum.

How the ASH Indicator Works?

The ASH Indicator has an algorithm which includes an underlying Relative Strength Index (RSI) and Stochastic Oscillator. The indicator uses either of the two oscillators as a basis for its calculations depending on the type of oscillator the user elects to use. It also applies moving average lines to its calculations to arrive at the values that the indicator would use as a basis for its histogram bars.

The color of the bars change depending on the value of the current bar compared to its prior bar. It plots blue bars when the value of the current bar is higher than that of the previous bar and a red bar whenever the value of the current bar is lower than that of the previous bar.

How to use the ASH Indicator for MT5

The ASH Indicator has a few modifiable options and variables which users can change to adjust the characteristics of the oscillator.

“Period” refers to the number of bars used to calculate for the underlying oscillator.

“Smoothing” refers to the smoothing period applied on its calculations.

“Mode” allows users to choose which oscillator to base its calculations on, whether RSI or Stochastic Oscilllator.

“Method” refers to the type of moving average applied to its calculations.

“Applied price” refers to the price point on the candle bar used for its calculations.

Buy Trade Setup

When to Enter?

Open a buy trade as soon as the histogram bars cross above zero in confluence with other technical indications.

When to Exit?

Close the trade as soon as the bars cross below zero.

Sell Trade Setup

When to Enter?

Open a sell trade as soon as the histogram bars cross below zero in confluence with other technical indications.

When to Exit?

Close the trade as soon as the bars cross above zero.

Conclusion

Aside from the trading method discussed above, traders can also take trades based on the changing of the color of the bars coming from an overextended level, since these signals also indicate a probable momentum reversal. However, the crossovers with zero tend to result in longer trending runs.

This indicator should also be used merely as part of a trading strategy and not as a standalone entry signal.

MT5 Indicators – Download Instructions

ASH Indicator for MT5 is a Metatrader 5 (MT5) indicator and the essence of this technical indicator is to transform the accumulated history data.

ASH Indicator for MT5 provides for an opportunity to detect various peculiarities and patterns in price dynamics which are invisible to the naked eye.

Based on this information, traders can assume further price movement and adjust their strategy accordingly. Click here for MT5 Strategies

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How to install ASH Indicator for MT5.mq5 to your MetaTrader 5 Chart?

• Download ASH Indicator for MT5.mq5
• Copy ASH Indicator for MT5.mq5 to your Metatrader 5 Directory / experts / indicators /
• Start or restart your Metatrader 5 Client
• Select Chart and Timeframe where you want to test your mt5 indicator
• Search “Custom Indicators” in your Navigator mostly left in your Metatrader 5 Client
• Right click on ASH Indicator for MT5.mq5
• Attach to a chart
• Modify settings or press ok
• Indicator ASH Indicator for MT5.mq4 is available on your Chart

How to remove ASH Indicator for MT5.mq5 from your Metatrader 5 Chart?

• Select the Chart where is the Indicator running in your Metatrader 5 Client
• Right click into the Chart
• “Indicators list”
• Select the Indicator and delete

ASH Indicator for MT5 (Free Download)

Click here below to download:

Download Now

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By: Tim Morris
Title: ASH Indicator for MT5
Sourced From: www.forexmt4indicators.com/ash-indicator-for-mt5/?utm_source=rss&utm_medium=rss&utm_campaign=ash-indicator-for-mt5
Published Date: Wed, 23 Nov 2022 08:03:06 +0000

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