Absolute Strength Indicator is an indicator that are used by traders to determine the strength of the different sessions. This indicator automatically creates transitions and go to next session on the basis of the time frame. This indicator is different to other indicators because it mostly focusses on the price. It is also used for market trading.
Absolute Strength Indicator
Absolute strength indicator produces signals on the basis of the instrument. It creates trading strategy. This indicator can also give loss. Absolute Strength indicator tells the current market strength in two different methods. The first one method is RSI Method and the second method is Stochastic method. This indicator can also be used for intra and day trading with forex strategies.
There are different three types of lines in this indicator green, orange and red. These lines are used for different calculation purposes such as two lines describes the strength of sellers and buyers. Green lines show the buyers and orange line shows the sellers. The dashed lines describe that when the market trend will be oversold or overbought.
The main objective of the Absolute Strength indicator is to display the signals and the strength of the market. This indicator displays the calculation in the form of points not in percentage. There are two levels that are strength level and weakness level. With the help of these two levels the traders can easily assume the future price movements and also can make changes in the strength.