Adaptive Relative Strength Index Smoothed is a popular trend following indicator among trend-based Forex traders. Because of its easier signal readings and clearer chart demonstration, Adaptive Relative Strength Index Smoothed is being widely accepted by newbie traders.
This indicator fits great with all kinds of timeframe charts. Besides, you’ll also be able to use it to trade any Forex currency pairs available at the MT4 trading terminal.
Adaptive Relative Strength Index Smoothed Overview
After installing the Adaptive Relative Strength Index Smoothed at your Forex MT4 terminal, your trading chart will appear like the following image:
This indicator uses a set of MA-based RSI indexes and plots a trend directive cloud around the price bars at the main chart window. Usually, the price holds its position above the indicator cloud signals the bullish trend.
Contrarily, the price intends to stay lower than the cloud level indicates the current trend as bearish. All you need to do is, look for a solid bullish candle right above the cloud as a buy signal or a solid bearish candle right below the cloud as a sell signal.
Adaptive Relative Strength Index Smoothed: Buy Parameters
- Price holding its position above the Adaptive Relative Strength Index Smoothed cloud
- A solid bullish candle appears right above the cloud area
- Buy triggers at the break of the bullish candle’s high
- Set stop loss below the respective signaling bar’s low
- Exit long/take profit once price starts to close below the indicator cloud
Adaptive Relative Strength Index Smoothed: Sell Parameters
- Price holding its position below the adaptive strength indicator
- A solid bearish candle appears right below the cloud area
- Sell triggers at the break of the bearish candle’s low
- Set stop loss above the respective signaling bar’s high
- Exit short/take profit once price starts to close above the indicator cloud
