MetaTrader 4 Absolute Strength Indicator Download – Free – [TFlab] – MT4/MT5 Resource

The Absolute Strength Indicator is one of the technical tools MetaTrader 4 indicators that measures the relative strength of buyers and sellers . This indicator provides insight into the strength of both bullish and bearish trends .

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

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

Indicator Table

The table below summarizes the key details of the absolute strength metric.

Indicator Overview

The absolute strength indicator plots two separate lines to show the strength of buyers and sellers :

• The green line represents buyer strength
• The red line represents seller strength

When one line moves above another, it signals a buy (upper green line) or sell (upper red line) opportunity. Unlike the RSI , this oscillator distinguishes separate buy and sell strength , providing a clearer view of market momentum.

Indicators in a Bullish Trend

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

At this point, traders can enter a buy position to reduce risk .

Indicators in a Bearish Trend

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

Traders can enter a sell position to confirm their trading strategy .

Indicator Settings

Set the panel to the absolute strength indicator as shown below:

• Mode: intensity calculation mode
• Period: Overall indicator calculation period
• Smoothing Period: Determine how often crossover occurs based on newline characters
• Signal Period: moving average calculation period (dashed line)
• MA Method: Selection of calculation method
• Applied Price: Defines the price type for indicator application

Conclusion

The Absolute Strength Indicator is a complementary tool for technical analysis , often used with the Volatility Indicator MT4 .

Measuring the strength of both bullish and bearish trends simultaneously provides traders with valuable insights, helping them to effectively assess market direction.