The Absolute Strength Indicator for MT5 is a powerful technical analysis tool designed to measure the strength of bullish and bearish trends. It not only helps traders identify trend direction but also provides BUY and SELL signals based on the crossover of its colored signal lines. Additionally, the indicator displays the magnitude of trend strength, making it useful for confirming exits when momentum begins to fade.
Ideal for both beginners and experienced traders, th'e Absolute Strength Indicator offers clear, visual insights into market direction. New forex traders can easily recognize bullish and bearish market shifts, while advanced traders can combine trend-strength readings with price action, trendlines, and support/resistance to refine entries.
The indicator plots two main signal lines inside a separate indicator window:
BLUE Line – Bullish strength
RED Line – Bearish strength
It also includes histogram bars that reveal the intensity of current market forces. This combination creates a simple yet effective method of following the trend in forex, stocks, and other markets.
A buy signal forms when:
The BLUE bullish line crosses above the RED bearish line.
The histogram shows increasing bullish momentum.
Price action supports the upward trend.
Traders can place BUY positions with stop loss levels set below the previous swing low. As long as the BLUE line remains above the RED line, the bullish trend is considered active. An opposite crossover suggests it’s time to close the trade.
A sell signal appears when:
The RED bearish line crosses above the BLUE bullish line.
Histogram bars reflect increasing bearish pressure.
Price aligns with downward momentum.
Traders may place SELL trades with stops above the recent swing high and remain in the position until the opposite crossover occurs.
The height of the histogram bars indicates how strong buyers or sellers are in the market:
High bars = strong trend continuation
Shrinking bars = weakening trend, potential exit opportunity
This makes the Absolute Strength Indicator particularly useful for trend-following traders who need clarity on when to hold or close positions.
The indicator works efficiently on:
Intraday charts (M5, M15, M30, H1)
Higher timeframes (Daily, Weekly, Monthly)
Because it adapts well to different market conditions, traders can use it for scalping, day trading, and swing trading strategies.
The Absolute Strength Indicator for MT5 is a versatile and user-friendly tool that offers reliable entry and exit signals. Beyond simple crossovers, its trend-strength visualization enables traders to judge whether a trend is gaining or losing momentum. Since it’s free to download and easy to install, it’s a valuable addition to any MT5 trading toolkit.
For more trading tools, strategies, and MT5 indicators, visit IndicatorForest.com for expert resources and downloads.
Published:
Nov 20, 2025 23:12 PM
Category:
