Currency Strength Meter Indicator Guideline
Currency strength meter indicator for MT5 is a popular technical analysis tool. As its name suggests it shows the strength of different forex currency pairs. However, the currency strength meter indicator MT4 employs historical and live data in order to provide forex traders with a fast presentation of the strongest and weakest currencies. To do that this indicator employs exchange rates of different currency pairs and calculates the strength of all cross pairs then applies measures to them to identify the strength of each individual currency. In this course, we will discuss the currency strength meter indicator for Tradingview and MetaTrader platforms.
Currency Strength Meter Indicator guide
What is the currency strength meter?Currency strength meter indicator is a very useful tool for all forex traders. Indeed, this instrument allows market players to know the strength and weaknesses of any currency. However, it displays as a histogram or a table next to the price chart. This table or histogram shows different colors and each color has a specific meaning. Red means that the currency is very weak. Orange means weak. Light green indicates that the currency is strong. And lime implies that the currency is very strong. The currency strength meter could be very helpful as it enables traders to make a fast decision without wasting of time and opportunities. So by identifying the strength of each currency, traders can decide which currency to buy and which to sell. currency strength meter executes a relative currency strength analysis for major forex pairs. In fact, it is a currency strength matrix that tells you which currency is or will be strong or weak. To clarify, this forward indicator reports to you the power of a single currency compared to all other majors. In short, it’s an excellent strength/weakness signal for major forex currencies.
Multi-currency strength meter
Currency strength indicator is classified as a multi-currency strength meter for MetaTrader. Because it measures and displays the strength of various currencies. But, the most preferred currencies are:
- USD: United States dollar
- EUR: Euro
- GBP: Pound Sterling
- AUD: Australian Dollar
- NZD: New Zealand dollar
- CAD: Canadian dollar
- CHF: Swiss franc
- JPY: Japanese Yen
Multi-timeframe currency strength meter
Furthermore, our currency strength MT5 indicator is classified as a multi-timeframe dynamic dashboard that updates regularly. In short, this currency strength indicator for MT5 displays a currency strength summary for various timeframes. But, the most favored timeframes are:
How does currency strength meter work ?
Let’s now look at how the currency strength meter works. The process is simple you just need to follow these simple steps:
In the beginning, currency strength meter identifies the base currency. then, it matches this base currency with all other available currencies on the forex market. After that, this indicator measures the relative strength of each paired currency based on the percentage of change and volume. Finally, it calculates the average score, which comprises between 0 and 10.
After doing all that, the currency strength meter indicator gives you an overall presentation of the strength and weaknesses of different currency pairs. Therefore, you don’t need to know all that because the indicator does it for you. Once you attach it to your chart you obtain a table showing you the strongest and weakest currencies. This is a great way to know quickly if the market conditions affect negatively or positively your positions.
How to Trade with the currency strength meter?
There are many ways to trade with the currency strength meter indicator. For instance, if you decide to trade with the trends, this indicator will assists you determine the strongest trend and gives you information about the strongest and weakest currency pair. Likewise, if you want to trade in ranges, you can employ it to identify the appropriate ranges for currency pairs.
Another thing you need to know is that we identify the strength of a currency by the timeframe we set for it. For instance, USD can be strong for today’s timeframe, but among the weakest currencies in the monthly timeframe. Indeed, choosing the timeframe depends on your forex trading strategy. However, if you trade in the long term you need monthly data. Otherwise, if you are an intra-day trader, you need recent data.
Why using this indicator ?
The currency strength meter is a very useful short-term indicator. It enables players to avoid needless forex hedging and double exposure. Besides, it is able to identify the level of risk of forex trades that you just entered. Moreover, it is used by scalpers and day traders as it quickly guides them to profitable currencies. It is also very helpful for short-term speculations because the currency strength meter gives a precise image of the present strength of a currency. Some players use it to verify the information obtained from other technical tools.
Download Currency Strength meter indicator for MT4
Currency strength meter indicator MT4 is among the easiest and simplest to use indicators. It is free to download and it displays near the price chart. This MT4 indicator is a kind of a table or histogram that shows the strength of individual currencies which happens through monitoring the performance of these currencies against all the other currencies. However, it can help forex traders specify the bearish and bullish currencies and create the best currency pair to trade.
Download Currency Strength meter indicator for MT5
Currency strength meter indicator MT5 or currency power meter is a tool that calculates the individual strengths of currencies. It assists forex traders to choose the best currency to trade with less effort and without wasting of time. This custom indicator draws every currency’s strength as color and also a numerical value.
Download Currency strength meter indicator Tradingview
Currency strength meter indicator Tradingview is a tool available on Tradingview platform. As you can see in the picture below this indicator indicates the strength and weaknesses of different currencies in a colored table. However, it is known as a multi-timeframe indicator. And it represents a perfect way to know whether a currency is growing or dropping across several timeframes.
Currency strength meter is a simple but effective technical tool. It gives forex traders information about the most profitable currency by identifying the strongest and weakest currencies. However, it provides signals employing colors and numeric values. In addition, this indicator fits all currency pairs and timeframes. For more accurate signals you can combine it with another indicator.