ASO Indicator
The ASO indicator for MT5 shows the direction of the trend, and also gives buy/sell signals. The ASO indicator for MT5 is one of the most accurate trend detectors on the market.
Description
The ASO indicator for MetaTrader 5 is also known as the Average Sentiment Oscillator indicator. This is a trend-following oscillator that shows the mood of the market and also gives buy/sell signals.
The indicator is built with two lines (of different colors) that are used to indicate the direction of the trend and a potential trend reversal. Also, the 50.00 level of the indicator is used to determine if the mood of the trend is bullish or bearish. Thus, the market is considered bullish when the royal Green line is above the 50.00 level. Similarly, a bearish trend is indicated when the red line is also above the 50.00 level.
Moreover, the indicator also suggests that the trend may reverse when the red and royal Green lines cross. However, you may need to look at price action/other indicators to find a suitable trade entry zone.
Buy/Sell Signals of the ASO Indicator for MT5
The image above shows how the ASO indicator would look on your MT5 chart. As stated earlier, the indicator signals a bullish/bearish trend when the royal Green or red line is above the 50.00 level.
Thus, a buy signal is generated when the bright Green color crosses the red line from the bottom up and stays above the 50.00 level. Similarly, the indicator suggests a possible selling opportunity when the red line crosses the royal Green line from below and stays above the 50.00 level.
In addition, you can set a predefined take profit, while it is recommended that the stop loss be placed above the recent highs. Alternatively, you can also break even after a few positive pips and then drag the stop loss until the royal Green/red line stays above the 50.00 level for a buy or sell position respectively.
Conclusion
The ASO indicator for MT5 is one of the most accurate trend detectors on the market, suitable for both beginners and advanced forex traders. What’s more, the signals are quite easy to understand and they can also be downloaded for free.
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