This MT4 indicator is recommended for those who want to check the strength of various currency pairs at just a glance. You can easily see the strongest and weakest currency pairs by only throwing a look at this indicator. It can also be used for arbitrage trading. Here we introduce such a valuable and easy-to-use indicator.
In the above example, this indicator is used on the hourly chart. As you can see from the image, the strength of each specified currency pair can be easily observed visually on the chart of the indicator that is plotted below the candle price chart.
For example, in this particular case, we can see that USDJPY is being sold compared to the other pairs. You can also see the correlation between pairs such as AUDUSD and NZDUSD.
This indicator is very convenient. There are many ways to use it and it can be a very useful tool to often refer back to while trading the markets.
1. Buy the weakest currency pair and sell the strongest currency pair
- For example, buying the weakest currency pair and selling the strongest currency pair may make a good profit.
2. Arbitrage trading
- This indicator offers opportunities for arbitrage trading if it is a contradictory currency pair used for arbitrage trading but appears to be moving in conflict. In these cases, both currency pairs are expected to move in the same direction. You should trade using this behavior.
- For example, NZDUSD and AUDUSD are often correlated and move in the same direction. If both pairs seem to move in different directions, trade in anticipation that they will return in the same direction in the future.
3. Finding easy-to-correlate currency pairs
- Some currency pairs are correlated and move in conflict. For example, EURUSD and GBPUSD are easy to move in the same direction. It can be used to find correlations and conflicts between these currency pairs.
- Correlations and reciprocal relationships may vary depending on the time of day and time. Correlations and reciprocal relationships may be disrupted due to fundamental changes. These changes can be caught quickly by using this indicator.
- Instrument 1
- Instrument 2
- Instrument 3
- Instrument 4
- Instrument 1 Color
- Instrument 2 Color
- Instrument 3 Color
- Instrument 4 Color
- Indicator Period - The period used for indicator calculation
- Indicator Applied Price - The price used for indicator calculation
Download the "Currency Strength Meter" indicator for free from the button below
Do you need help with installing this indicator into MT4 for Windows or Mac OS? Our guide HERE will help you.