currency strength indicator mt4

indicator to determine how strong (or intensity) a currency is relative to its counterpart. To solve this problem, we have designed a free currency strength table. In this article, we will explain this indicator.

The Quantum currency strength indicator mt4 has been designed to show you easily and quickly when a currency is moving strongly in one direction or another, either to an oversold state, or to an overbought state. Currencies and currency pairs move constantly from one to the other in all timeframes.

currency strength indicator mt4 The overbought and oversold regions on the indicator are defined by the dotted lines at 20 and 80 and once these regions are approached then this is a signal for further analysis on the chart.  Using the indicator in multiple timeframes is an excellent way to see whether a currency is rising or falling across several timeframes, adding a further dimension to your analysis, and allowing you to quantify the risk on any trade in a more detailed way.

How to use currency strength indicator mt4?

Interpreting a Currency Strength Lines indicator for MetaTrader is not difficult. This Currency Strength meter shows the strength of a currency with a line, and there are some simple rules to read it.

There are several ways to calculate the strength, however, the main rules are:

• A line going upwards means that the currency is gaining strength.
• A line pointing downwards means that the currency is becoming weak.
• Flat lines, or almost flat, represent currencies that are maintaining their current strength.
• A line above another one means that one currency is stronger than the other one.
• A line above zero is likely to have a bullish trend against currencies below zero and vice versa.

How to Trade Currency Strength Lines?

Considering the basic rules explained above, ideally you always want to trade a strong currency (or a strengthening one) against a weak currency (or a weakening one).

The Currency Strength Lines indicator is versatile and, depending on your trading style, you can use it for both long-term trading and scalping.

It is best to use Currency Strength Lines with some confirmation signals when trading.

Generally, you might want to trade:

• Diverging lines, where one currency is gaining strength and the other one is losing strength.
• Currencies on opposite sides — one with its line significantly above zero and one — significantly below.
• BUY the STRONG and SELL the WEAK.

These are the points where the currency may reverse and change its trend. The overbought and oversold areas on the indicator are defined by the dashed lines at 20 and 80, once these areas are approached this is a signal for further analysis on the chart. Using the indicator over multiple time frames is a great way to see if a currency is moving up or down over multiple time frames, adding more dimensions to your analysis.

Advantages

As you can see in the examples, knowing the strength of individual currencies can be very useful. In particular, the advantages of the Currency Strength Lines indicator for MetaTrader are:

• It shows the strength of a currency across the board, confirming or denying the price trend in a pair.
• Allows you to spot which currencies are strong and which are weak, so you can choose what pair to trade.
• Helps you understand if a trend is still strong or is exhausting.
• Helps you spot possible countertrends.

Long story short, the indicator can be a helpful instrument for your trading, and if you employ technical analysis in your trading, you want it in your tool case.

Download for MT4

This Currency Strength Lines indicator for MT4 tries to show you the absolute strength of the 8 major currencies. The indicator uses an algorithm based on the standard MetaTrader RSI indicator to calculate the strength of a currency. The Currency Strength is established by scanning the RSI of all the currency pairs, finding then a value that is independent.

The indicator also includes alert features. You can download it for free: