The Currency Strength Meter is a great tool for traders who wants to qucikly check the strength of various currency pairs. With a glance of the eye you will know the strongest and weakest forex instruments at the moment. You can also use it in arbitrage trading. All in all, it will be a great addition to your trading arsenal.
Currency Strength Meter Indicator Overview.
The indicator is displayed in the seperate window below the main trading chart. You can easily observe visually the strength of each specified currency pair of your choice.
When you load up the indicator on your Metatrader platform the charts should look like this:
As you can see in above example, the USD/JPY (blue line) is much stronger than other currency pairs. You can notice huge bullish market move at the same time.
How to trade with the Currency Strength Meter?
This indicator is very user-friendly, easy-to-use and most importantly, very useful for attempting to profit in the financial markets. There are many trading methods it can be used with. Some of them include:
1. Buying the weakest currency pair and selling the strongest currency pair.
There is not much to explain in this trading approach. Simply buy the weakest currency pair and sell the strongest currency pair and try make a good profit.
2. Arbitrage trading.
This indicator offers opportunities for arbitrage trading if it is a contradictory currency pair used for arbitrage trading but appears to be moving in conflict. In these cases, both currency pairs are expected to move in the same direction. You should take advantage of this behavior and trade such a situations.
For example, NZDUSD and AUDUSD are often correlated and move in the same direction. When both pairs seem to move in different directions, trade in anticipation that they will return to moving in same direction in the future.
3. Following easy-to-correlate currency pairs.
Some currency pairs are correlated and some of them move in opposite directions. For example, EURUSD and GBPUSD tend to move in the same direction. This fact can used for trading correlations and conflicts between these currency pairs. Correlations and reciprocal relationships may vary depending on the time of day and date. Correlations and reciprocal relationships may be affected and disrupted due to fundamental changes (high impact news). These changes can be spotted quickly by using this indicator.
How to install this indicator on your Metatrader trading plaftform?
- Download the indicator by clicking “LINK” button at the bottom of this post.
- Copy and paste the Currency Strength Meter Indicator files into following folder of your Metatrader 4 platform: MQL4 > Indicators.
- You can gain access to the folders this way: File > Open Data Folder > MQL4 > Indicators (paste files here).
- Restart your Metatrader 4 Client.
- Select Chart and Timeframe where you want to test the indicator
- Browse “Custom Indicators” in your Navigator that is located on the left in your Metatrader 4 platform.
- Right click on Currency Strength Meter.ex4 and than click “Attach to the chart”.
- You can modify settings if you need and than click ok.
- The indicator is ready and running on the chart.
Currency Strength Meter Indicator free download.
To download this indicator or trading system just click the button below: