Awesome Bar Counter Indicator for MT4

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Awesome Bar Counter Indicator for MT4

Introduction to the Awesome Bar Counter Indicator

The Awesome Oscillator (AO) is one of the more widely used oscillators because of its versatility. Not only does it indicate trend strength but it also indicates the strengthening or weakening of the trend. This also usually coincides with the market swings, which can often be short pulses, but can also potentially be the start of a new trend. The Awesome Bar Counter Indicator uses this component of the Awesome Oscillator to help traders identify each market swing as well as the potential momentum breakouts and reversals.

What is the Awesome Bar Counter Indicator?

The Awesome Bar Counter Indicator is a momentum indicator which aids traders identify potential trend reversals based on momentum shifts in price action. It does so by counting the bars in a trend based on an underlying Awesome Oscillator and measuring the volatility within each bar.

This indicator plots lines which form triangle like structures in a separate indicator window. Each triangle indicates a market thrust or trend. The triangle ends only when the market thrust or trend has ended. As one triangle ends, a new triangle would start to form.

Awesome Bar Counter Indicator for MT4

How the Awesome Bar Counter Indicator Works?

The Awesome Bar Counter Indicator uses an underlying Awesome Oscillator to identify market pulses or trends. It basically starts a new triangle whenever its underlying Awesome Oscillator bars start to shift momentum which is often identified by the changing of the color of an Awesome Oscillator bar. It continues the trajectory of the line forming the triangle until the bars of the underlying Awesome Oscillator changes color.

How to use the Awesome Bar Counter Indicator for MT4

This indicator has one variable which traders can use to modify the indicator’s sensitivity.

The “aBarsPeriod” variable allows users to modify the number of periods used to compute the underlying Awesome Oscillator. This effectively modifies the sensitivity of the Awesome Oscillator and the Awesome Bar Counter.

How the Awesome Bar Counter Indicator Works

This indicator can be used to identify strong market swings, tight ranging markets, as well as slow moving trends.

Small triangles which form consecutive to each other indicate either a choppy market, a tight ranging market, or a slow moving trend with short pulses.

Large triangles indicate a long sustained price swing or a momentum breakout forming a new trend.

Buy Trade Setup

When to Enter?

Open a buy order on the confluence of a triangle strongly breaking out of a series of tight triangle formations and a bullish momentum candle. Set the stop loss on the support below the entry candle.

When to Exit?

Close the trade as soon as the triangle closes.

How to use the Awesome Bar Counter Indicator for MT4

Sell Trade Setup

When to Enter?

Open a sell order on the confluence of a triangle strongly breaking out of a series of tight triangle formations and a bearish momentum candle. Set the stop loss on the resistance above the entry candle.

When to Exit?

Close the trade as soon as the triangle closes.

How to use the Awesome Bar Counter Indicator for MT4 - Sell Trade

Conclusion

This indicator does not provide the trend reversal or momentum breakout direction. However, what it does is help traders identify instances of a strong momentum breakout. This indicator can be an excellent tool for momentum breakout and trend reversal traders, especially when traded in confluence with price action based signals.

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Awesome Bar Counter Indicator for MT4

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