Currency Strength Indicator
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The Currency Strength Indicator displays the strength of the major 8 currencies. It consists of two components: a bar for real-time values and a line chart for the historical trends.
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Usage scenarios
Target pairs with large currency strength differences
Pairs that combine the strongest and weakest currencies based on the currency strength values are likely to show a clear trend, making them potential entry points. For instance, by checking the real-time currency strength bars (bar graph), if JPY is the strongest and NZD is the weakest, NZDJPY may exhibit a strong downtrend, providing an opportunity to consider a sell entry.
Check historical trend
Analyze the historical trend of currency strength using this indicator’s line chart. Identify pairs where one currency has experienced a reversal in strength, while the other shows an opposite movement, to guide entry or exit decisions.
For determining trend continuation
The Currency Strength Indicator can be used alongside other technical indicators. For example, if another indicator suggests that EURGBP is in an uptrend, you can use the currency strength values to assess the relative strength of EUR and GBP among major currency pairs, providing additional insights for decision-making.
For cross-market analysis with CFDs
The Currency Strength Indicator can be utilized for cross-market analysis by combining specific stock indices with currency strength. For example, monitoring the correlation between the Nikkei 225 and the Japanese Yen (JPY), or WTI crude oil CFDs and the Canadian Dollar (CAD), allows you to analyze the relationships between non-FX instruments and currency strength effectively.
By monitoring currency strength on MetaTrader, you can seamlessly incorporate it into trading ideas for trend analysis and cross-market analysis. If you are considering utilizing currency strength in your strategy, we highly recommend trying this tool.
How to install
To use the Currency Strength Indicator, follow the steps below to download and install it.
Step 1
Click the button below to download the indicator for MT4/MT5.
Step 2
Click File > Open Data Folder in the top menu of MT4/MT5.
Step 3
In the data folder, double-click the MQL4 or MQL5 folder.
Step 4
In the MQL4/MQL5 folder, double-click the Indicators folder.
Step 5
Save the Currency Strength Indicator in the Indicators folder.
Step 6
Go back to the MT4/MT5. Right-click Indicators in the Navigator, and click Refresh.
Step 7
In the Navigator, click the + icon next to Indicators. Find the Currency Strength Indicator, then either double-click it or drag it onto a chart.
Step 8
In the indicator settings window, customize the settings on the Inputs tab according to the How to set up page, then click OK.
Step 9
The Currency Strength Indicator is applied to the chart and will be shown in the sub window.
How to set up
After applying the indicator to the chart, set the parameters according to your style.
Step 1
First, open the Inputs tab.
Step 2
Set the parameters as follows.
Select ON if you wish to only display the line graph of a specific currency pair.
Specify the currency pair to display the line graph when "Show specified currency pair" is ON.
Specify the period by the hour to calculate the currency strength. Use values 1-24 for best results.
Displays currency strength for a specified timeframe, independent from the original chart. The time of the line graph may not correspond with the one of the original chart.
Adjust the amount of past currency strength data shown on the line graph by specifying the "number of candlesticks".
Automatically adjusts the view settings based on your screen resolution. Choose from "UHD 4K (2160p)", "WHD 2K (1440p)", and "Full HD (1080p)".
Specifies the magnification value for the line graph and the bar. Adjust it if the graph is too small.
