MetaTrader 5 Absolute Strength Indicator Download – Free – [TFlab] – MT4/MT5 Resource

The Absolute Strength Indicator is a widely used MetaTrader 5 indicator that helps identify the relative strength of buyers and sellers in the market.

It is particularly useful for traders employing trend-based trading strategies , providing precise analysis of dominant trends and assessment of market strength.

Unlike the RSI indicator , which presents an overall market strength , the Absolute Strength Indicator identifies the strength of buyers and sellers respectively , offering a more detailed market analysis .

Absolute Strength Index Specifications

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

Indicator Overview

The Absolute Strength indicator is displayed in a separate window below the price chart and consists of two solid lines and two dashed lines . Each line represents the strength of buyers and sellers over a different time frame .

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

This indicator provides a comprehensive understanding of market strength , allowing traders to effectively identify trends .

Indicators in a Bullish Trend

When the green line is above the red line , it indicates a bullish trend , confirming the dominance of buyers in the market.

In the chart below, the EUR/USD currency pair is shown in a 5-minute timeframe . Each time the green line breaks upward , the price rises and traders can enter a buy position .

Indicators in a Bearish Trend

In the bearish trend example below, the GBP/USD currency pair is displayed in a 4-hour timeframe .

When the red line is above the green line , it means sellers have gained control over the market. Traders can enter a sell position based on their own situation strategies and confirmation signals .

Indicator Settings

The image below shows the settings panel for the Absolute Strength indicator :

• Mode: intensity calculation method
• Period: Overall indicator calculation period
• Smoothing Period: Determine how often crossovers occur based on trend strength
• Signal Period: moving average calculation period (dashed line)
• MA Method: Selection of calculation method
• Applied Price: Specify the price type to which the indicator is applicable

Conclusion

The Absolute Strength Indicator is one of the Currency Strength Indicator for MetaTrader 5. By plotting the Buyers Strength Green Line and the Sellers Strength Red Line , it provides a clear view of market control and the relative dominance of buyers or sellers.

When the green line is above the red line , it indicates an uptrend and can be used as a buy signal . On the contrary, when the red line is above the green line , a downtrend dominates, providing a sell signal .