Absolute Strength Indicator for MetaTrader 4 Download – Free – [TFlab]

The Absolute Strength Indicator is a technical tool among MetaTrader 4 indicators that measures the relative strength of buyers and sellers. This indicator simultaneously provides insights into the intensity of bullish and bearish trends.

By analyzing price data and trading volume, the Absolute Strength Indicator determines the dominance of buyers or sellers in the market.

It helps identify which group has the upper hand at a given moment and how the overall market trend is shaping.

Indicator Table

The table below summarizes the key details of the Absolute Strength Indicator:

Indicator in a Bullish Trend

In the 1-hour chart of USD/CHF, when the buyer strength line (green) moves above the seller strength line (red), it signals a bullish trend in the market.

At this point, traders can enter a buy position with reduced risk.

Indicator in a Bearish Trend

The following example illustrates the 30-minute chart of CAD/JPY. When the red line crosses above the green line from below, it indicates the beginning or continuation of a bearish trend.

Traders can enter a sell position after confirming their strategy.

Indicator Settings

The settings panel for the Absolute Strength Indicator is shown in the image below:

• Mode: Calculation mode for strength
• Period: Overall indicator calculation period
• Smoothing Period: Determines how frequently crossovers occur based on the break of lines
• Signal Period: Moving average calculation period (dotted line)
• MA Method: Selection of calculation methodology
• Applied Price: Defines which price type the indicator applies t

Conclusion

The Absolute Strength Indicator is a complementary tool in technical analysis, often used alongside volatility indicators MT4.

Simultaneously measuring the intensity of bullish and bearish trends provides valuable insights for traders, helping them assess the market direction effectively.