The currency strength meter is a graphical representation of the strength or weakness of currencies in the Forex market. Having real time of specific currency you can understand which currency is over or undervalued. This gives you advantage. You can use it as addition to your technical analysis. The Currency Strength Meter is technical indicator which determines relative Strength of currencies.
How it Works?
The algorithm is calculating overal strength in combination with all pairs associated with a specific currency. After all calculations we get graphically results on the chart. Which help a lot to read information easily. This indicator using data from last 24 hours.
Indicator measures main currencies: USD, GBP, EUR, CHF, JPY, CAD, NZD, and AUD and comparing all 28 crosses between them. Perfect usage of Strengths Meter would be monitoring your positions. perfect solution for swing and position traders. But even if you are day trader it will help, if you see that dollar is to strong you don”t want to open position against dollar.
How to Trade with Currency Strength Meter?
As I sad before, the ideal situation would be to use it if you are already open position as swing or position trader. But it can be also used in combination of other indicators for day trading or even scalping. In this situation you need to trade in direction of the strength. As a day trader you are chasing 10 to 40 pips per position so it could be useful. It can be addition to your strategy, Let”s say you have two things in your strategy that are confirm signal and this indicator is also confirm same direction and that”s it, you are ready to go.
It can be addition to your strategy, Let”s say you have two things in your strategy that are confirm signal and this indicator is also confirm same direction and that”s it, you are ready to go.
Download Currency Strength Meter
MetaTrader 4 Indicator