MT4 Currency Power Indicator

This MT4 Forex Power indicator can be described as a variant of the currency strength indicator. The indicator uses very few resources and calculates the results quickly. In addition, the indicator displays the results depending on the strength of the currency, so that traders can see the strongest and weakest currencies at a glance. It also shows the currencies that are on the courses in different shades. In this way, currency traders can recognize whether a currency is bearish or bullish and can buy and sell the currencies accordingly.

Forex traders can place the indicator on any time frame chart as the indicator is not dependent on a specific time frame. Moreover, this indicator is suitable for beginners and advanced currency traders. The beginner can understand the value of currencies and identify the most profitable currencies to buy and sell. However, experienced forex traders are able to harness the power of currencies to develop sophisticated trading strategies. In addition, forex traders can download the indicator for free and set it up easily.

MT4 Currency Power Indicator Trade Setup

candlestick price chart showing the MT4 currency power indicator in action. The results are also displayed in a square column of the chart. In addition, the indicator displays the currency in the current chart in a different color tone.

The highest value means that the currency is at its most bullish, while the lowest value means that the currency is at its most bearish. Forex traders can therefore combine the bearish and bullish currencies into a pair and then trade according to the direction of the pair. They can then exit the trade when the strength of the currency reverses.

For example, traders could take a BUY trade when the currency that is the primary currency in the trade has the strongest upside potential and place a stop trade order below the previous swing low. If the currency of the primary currency is weak or the currency used by the secondary currency of the pair is gaining strength, traders decide to exit the transaction. On the other hand, traders with a favorable risk/reward ratio can make profits.

In the same way, traders who have already entered a position can use the strength of the currency to follow the trade. The indicator displays the currency pairs in different shades, which helps traders to recognize the pair. Forex traders should be wary of trading currencies that have the same or almost the same strength. For the best results, traders should choose the strongest currency, i.e. trade the currency with the biggest uptrend against the currency with the biggest downtrend.

Conclusion

MT4 Currency Power indicator (CPI) is an indispensable tool for forex traders that utilizes the strength to discern bearish and bullish currencies. In fact, the concept of putting one of the best against another trading technique is utilized by a lot of forex traders.