ASH Indicator
The ASH indicator for MT5 is a momentum and trend reversal tool for buy/sell entry. Try it now.
Description
The MetaTrader ASH Indicator, also known as the Absolute Strength (ASH) Histogram, is a trend following tool that displays the bullish/bearish momentum of an asset.
The indicator is a great combination of moving averages, Stochastics, RSI and histogram bars. Green and red moving averages are signal lines. A bullish move is depicted when the green moving average crosses the red one upwards, and a bearish move is depicted when the red moving average crosses the green downwards.
In addition, the histogram bars show the overall strength of the trend. The green and red bars of the histogram represent bullish/bearish momentum, respectively. The indicator is suitable for beginners, intermediate and advanced forex traders. In addition, it is also ideal for scalpers and intraday traders.
However, the indicator is not recommended to be used as a standalone trading tool, but rather in combination with price action/other technical indicators.
How To Trade With ASH Indicator
The screenshot above shows how the indicator will look on your MT5 chart. First, the projected trend line shows a possible change in the direction of the trend to bearish. Secondly, the red signal line of the indicator also goes down, which once again confirms the direction of the trend as bearish.
In addition, the indicator also draws red bars on the histogram, which also indicates a strong bearish momentum. Under the above conditions, you can enter a sell/short position after the price action has printed a bearish engulfing candle.
The above trade entry method is highly recommended as it checks for false signals and has a higher win rate than opening/closing trades on moving average crossovers.
Conclusion
The ASH indicator for MT5 is a momentum and trend reversal tool for buy/sell entry. However, it is not always advisable to open a buy/sell position whenever the moving averages cross each other. This is because it can sometimes result in several losing trades due to random market movement. Finally, it’s free to download.