Max_bars – maximum number of bars that are included in calculations.Įnable alert – option switches the alerts on/off.Įnable email – allows sending alerts to email.Įnable_mobile – allows sending alerts to the mobile number via SMS.
Strength_smoothing_method – method that will be used for calculations.Ĭalculation_type – one can choose the basic indicator that will be used for calculations (MA, RSI, or MACD).Įnable_M1-MN – option allows users to include\exclude timeframes. Strength_smooting_period – number of periods that will be included in calculations. The indicator has the following parameters:Ĭurrencies – choosing currencies for calculations. MT4 Currency Strength Meter indicator input parameters The color of the cell is changing depending on the strength or weakness of a particular currency. If all cells are red, this currency loses strength. If all cells are green, this currency is growing on all timeframes. The values of the indicator are changing constantly depending on the market situation. The indicator recommends paying attention to NZD/CHF currency pair (short position). The weakest currency is NZD here while the strongest is CHF. Totals line shows the total result of calculations of all timeframes while the Results line shows the results by a particular timeframe. The strength/weakness calculations are based on the chosen indicator (MA, MACD, RSI). If it is weaker, it is deducted one point. To calculate points, the indicator uses the following criteria – if a currency is stronger on a particular timeframe, it is given one point. In the example above, the strongest currency is CHF as it shows seven points on each timeframe (one point is given for each currency). The calculations are done for eight basic currencies using 28 scanned currency pairs. Dashboard visualizes currency strength on various timeframes and shows final results on each separate timeframe and on all timeframes in general. It works on all timeframes and shows the summary of the calculation results. The dashboard allows traders to get a general view of the market.
#CURRENCY STRENGTH METER HOW TO#
How to interpret the Currency Strength Meter Indicator and read the dashboard? When it comes to M30, Currency Strength Meter Indicator recommends selling NZD/CHF as NZD is the weakest currency on this timeframe while CHF is the strongest. If a trader uses an M5 timeframe to open positions, they can buy GBP/NZD currency pair in this example. It is important to pay attention to the timeframes. It can be either histogram plunging below 0.00 level or GBP green line breaking down NZD red line. It is to mention that one can hold their positions until the opposite signal appears. Histogram crosses its 0 level at this moment and changes its color from red to green. The entry point appears once the green line (GBP) crosses the red line (NZD) from below. A green arrow indicates that the trend will continue. If a trader uses RSI for calculations, they can find entry points for trend following or reversal strategies. How to trade using Currency Strength Meter indicator ?Īs it was already mentioned, this indicator can be used to both follow the trend or find reversal signals. One can also set alerts on the chart and dashboard to make it easier to work with this indicator. When it comes to the indicators that are used in this technical analysis tool, their values can be adjusted making CSM an even more powerful and flexible tool. Currency Strength Meter Indicator demonstrates whether the currency is trending currently or is ready to reverse. The idea behind those calculations is to understand the current market situation.
The weakest currency in this example is NZD having -33 points in TOTALS. If we take this example above, the strongest currency is CHF as it has 29 strength points in the TOTALS column. One can choose between three indicators (MA,MACD, RSI) to calculate currency strength. The bigger the number is, the more strength the currency has currently. All those values are calculated in the TOTALS column giving traders the final result. Each timeframe has a separate value that can be either positive or negative. One can use it as a separate trading strategy or to benefit from this indicator to measure the currency strength and use it as a confirmation tool.Ĭurrency Strength Indicator analyzes each of eight main currencies that are included in calculations of all timeframes available using one of the basic indicators that are included in the tool. Traders can use currency strength to forecast price fluctuations to make the best trading decisions.
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