Currency Strength Meter Indicator
Currency strength meter indicator for MT4 shows strongest and weakest currency. Best forex trading signals with BULLISH and BEARISH trend.
Description
The Currency strength meter indicator for MT4 shows the strength of individual currencies by monitoring their performance against all other currencies. As a result, the indicator plots every individual currency’s strength as a visual color histogram and also as a numeric value. So forex traders can easily identify the BULLISH and BEARISH currencies and form the best currency pair to trade. By combining the strongest currency against the weakest and by continuously monitoring its strength technical traders can ride the trend using a trend following trading strategy.
If you prefer this to the others, we also recommend using tools that work well for you on our site including the Currency Meter Indicator and the Currency Slope Strength Indicator. Both indicators are based on the same concept of relative currency performance and can be excellent tools or options depending on trading style.
Based on my observation, this indicator is among the first tools I choose to load when I examine the market. Installation only takes seconds, and once it is on the chart you instantly see which currencies need to be focused on and which should be avoided.
The indicator works well for new and experienced forex traders. New traders can visually identify the BULLISH and BEARISH trends of the currencies and their underlying strengths. Additionally, the indicator is free to download and easy to install.
Here, it eliminates guesswork early on in the analysis process — something I personally appreciate: I can jump between pairs without jumping to anything.
Currency Strength Meter Indicator For MT4 Trading Setup
The above GBPUSD H1 chart shows the Currency Strength Meter Indicator for MT4 in action. The indicator displays the meter in the lower right bottom of the chart. Moreover, the currency strength is shown in various colors depending on the currency strength. RED for very weak, OrangeRed for weak, Light Green for strong, and Lime for very strong. Additionally, the strength in a numerical value is in Sienna and the name of the currency in DarkSlateBlue.
In reality, that color code can be extremely useful in fast market scenarios. At a moment’s notice, I know the moment when a currency is moving from weak to strong, usually before a new trend emerges on the price chart.
Forex traders can use this indicator to identify the strength of one currency against other and find the strength of an individual currency. So, forex traders can pair the strongest currency against the weakest and BUY or SELL accordingly. As the higher value of a currency shows the underlying BULLISH market trend, the lowest value indicates the underlying BEARISH price trend.
I normally wait until the weakest and best currencies are clearly separated before trading. But at the same time, such patience often clears out the mediocre setups and raises the global standard of trade quality.
On the other hand, a reducing strength value indicates that the currency is losing its strength. So forex traders can exit the trade or book profits partially. But, if the currency strength continues to hold, traders can hold the position and ride the trend until the currency shows weakness.
The indicator works on the principle, if one currency is gaining BULLISH momentum then some other currency will gain BEARISH momentum. So forex traders can BUY or SELL and currency pair once a Strong and weak currency is identified and pitch them against each other.
The indicator works well in all intraday time frames as well as the daily, weekly, and monthly charts. So forex traders can use this indicator to identify the trend in the higher time frame to choose the best entry and exit point in a lower time. So the indicator is used to trade using a multi-timeframe (mtf).
Pros and Cons of the Currency Strength Meter Indicator
Pros
- Visualizes all the top currencies’ value visually in a single view.
- Enables traders to rapidly establish high-probability currency pairs.
- Good for all timeframes and styles of trading.
- Great for following trends and momentum strategies.
Cons
- No direct entry point.
- Should be added with price action or technical levels.
- Short-term changes in strength that will result from temporary fluctuation.
Conclusion
The Currency Strength Meter for MT4 provides trading signals using the colors. However, the trading signals provide the best results if the price bounces from a support or resistance or channels. Moreover, forex technical traders can trade the trading signals in confluence with other trend indicators. Additionally, forex traders can download the indicator for free and install it with ease.
From my experience this indicator is very much in line with the Smart Money–style analysis where you need to know relative strength and weakness. To learn more about this, you might read our blog on the Smart Money Concept, an article about how professional market participants think and position themselves.
Frequently Asked Questions (FAQ)
Should the Currency Strength Meter be used by beginners?
Yes, visual colors and numeric values make sure it’s easy to understand.
Can this single indicator be used for trading only?
It’s better associated with price action, support/resistance or trend signal.
Does it repaint or change historical values?
No, it is dynamically updated from live market data.
Which period really works better with this indicator?
All timeframes hold, yet longer periods offer more reliable strength readings.
Can it be used for scalping, though?
Yes. Especially when combined with lower-timeframe entries and good risk management.