Currency Slope Strength Indicator
MT4Also Available for MT5The currency Slope Strength indicator for MT4 is a custom trading tool that measures and compares the strength of different currencies.
Description
The Currency Slope Strength indicator for MetaTrader is a custom trading tool that measures and compares the strength of different currencies. It comes with lines that represent the rise and fall in the strength of the selected currencies.
The indicator has algorithms that are sensitive to the changes in the prices of different currencies. The algorithms work with the slope angle of a currency to determine its strength. A weak currency is depicted when the negative slope angle is negative, while a strong currency is posited when the positive slope angle is positive.
Basic Signal Interpretation of the Currency Slope Lines
- A change in trend direction is depicted when two lines cross.
- A potential new trend is depicted when one of the lines moves into and remains within the horizontal lines while the other line moves out.
- A continuous trend is suggested when the two lines break out of the horizontal bars in an opposite direction.
How to Trade With The Currency Slope Strength Indicator
The above image depicts the action of the indicator on a EURGBP pair in the H1 time frame. It signals a potential bullish trend after the EUR (deep blue line) and GBP (royal blue) crossed above the horizontal line to the upside.
Furthermore, the EUR line is higher than the GBP line, which posits that the former is stronger than the latter. This suggests a change in the trend direction and also implies the possibility of a strong trend momentum on the EURGBP currency pair. Finally, price action (bullish engulfing candlestick) was used as a guide to enter the buy trade.
Conclusion
The Currency Slope Strength Indicator for MT4 is essentially a trading tool designed to help you to keep a tab on the strength or weaknesses of different currency pairs. The indicator is recommended for the novice, intermediate, and advanced forex traders. It is also a reliable tool for scalping, day/intraday, and swing trading. What’s more, it is free to download.
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