Overview
The Absolute strength histogram oscillator works as a histogram and is used to plot the absolute strength of the price action in a histogram format.
The indicator is used to determine the absolute strength of the chart that it is applied to. The indicator sits below the chart and combines both a histogram and a moving average line.
Traders use the absolute strength indicator as a way to determine the strength of the sessions to which it is applied. The indicator automatically shifts and changes depending on the time frame to which it is being applied.
In a way, the absolute strength indicator might resemble other histograms such as the awesome oscillator or the MACD as well. But the main difference is that the Absolute strength indicator looks to the price action rather than other indicators.
Buy and sell signals are generated based on the strength of the instrument and the way it is, relative to the average that is plotted on the chart. Therefore, the Absolute strength indicator can sometimes be used as a way to trade the markets.
However, despite the fact that the indicator might seem like a lucrative way to trade the markets, it is always essential that you also utilize other trading indicators or technical strategies in order to build a trading strategy.
Relying solely on the absolute strength indicator can lead to potential losses while trading. So, if you want to experiment with the absolute strength indicator, it is recommended that you first use this on a demo trading account before applying this to the real markets
Features
- Identifies strength of the trend
- Measures absolute strength of the price action in a histogram format
- Paint bars
- Oscillator below the chart
- Works on timeframe
- Works on any market (futures, forex, crypto, stock, options, etc)
- Works on any bar-type (time, tick, volume, range, Renko, etc...)
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