ROC Multi Currency Indicator
The ROC Multi Currency Indicator tells you which currency is the strongest and which one is the weakest.
Description
The ROC Multi Currency Indicator for MT4 tells you about the rate of change of the selected currencies. The indicator comes with the four currencies, each distinct their own way.
It presents you with four lines of red, green, blue and orange color. When you first apply the indicator, the lines look like waves.
The indicator draws the strongest currency as green, while red is the weakest of them all. The blue and the orange color reflects the second strongest and weakest color.
The default currencies of the indicator are EUR, JPY, CHF, and USD. Whenever these currencies fluctuate, the ROC Multi Currency Indicator draws a weaker or a stronger wave for the currency.
How to trade the ROC Multi Currency Indicator?
The ROC Multi Currency Indicator doesn’t provide entry and exit points; rather, it points out the rate of change of each currency. The indicator plots waves differentiating four popular currencies against each other.
From the four currencies, whichever is the strongest, second strongest, weakest and second weakest, the indicator will draw the wave on the chart.
When trading on pairs from these four currencies, the indicator can help you decide whether to go long or short. For instance, if you are trading on EUR/USD, you can find out which of the two currencies is the strongest/weakest and then trade accordingly.
The indicator can also assist you in determining the strength/weakness of other pairs also. For instance, if you are trading GBP/JPY, and JPY is the weakest, you’ll take a buy position on the pair.
As the indicator doesn’t give trading entries, you need to combine it with others like the RSI or the Moving Average to enter or exit the trade.
Let’s find out the buy and sell strategy for the indicator by using the RSI:
ROC multi-currency buy strategy
- Find out the weakest/strongest currency from the pair.
- The RSI should be below 30.
- Wait for the price action to continue its path, and enter long.
- Place a stop-loss below the recent swing low.
- Exit the trade when the RSI goes above 70.
ROC multi-currency sell strategy
- Find out the weakest/strongest currency from the pair.
- The RSI should be above 70.
- Wait for the price action to continue its path, and enter short.
- Place a stop-loss below the recent swing high.
- Exit the trade when the RSI goes below 30.
Conclusion
The ROC Multi Currency Indicator works on all timeframes and depicts the rate of change of four currencies. From this, you can figure out which currency is the strongest and which one is the weakest.
You need to combine the indicator with the RSI or the Moving Average for buy or sell entries.