A.B Strength Histogram

Installation: Open your MT4, scroll up to File>Open Data Folder>MQL4>Indicators and paste the EX4 file(s) there. Restart MT4.


How It Works

The A.B Strength histogram indicator can be a very useful way of seeing the strength of the trend. For beginner traders, looking at a regular candlestick chart might not be enough to identify the trend. An indicator like this will be helpful. As you can see the indicator has GREEN and RED zones. If you match the zones with the candlesticks above, you will notice that the RED zones match the down trend and the GREEN zones match the up trend. This indicator can be used to filter trades that your current system/strategy might be giving you. If the market is in the RED zone for example, you should make sure that you are only taking “sell” trades and if the current market is in the GREEN zone, you should make sure that you only take “buy” trades. To be safe, always trade in the direction of the trend. But to determine the trend, you must use the correct tools. It is also possible to scalp with this indicator. If current market is in the RED or GREEN zone, you can scalp a few pips. 🙂

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