Forex Mini Currency Strength Meter MT4 Indicator:
About the Forex Mini Currency Strength Meter MT4 Indicator
Mini Currency Strength Meter
Mini Currency Strength Meter is a PORTABLE (mini) currency strength meter created to measure/analyze currency strength and pass the information to the trader through a graphical display of each currency group’s strength rates by percentage.
It is useful in two ways for trading:
1. Solo Trading
2. Basket Trading (Currency Group Trading)
HOW TO USE IT EFFECTIVELY
Solo trading: It can be used for solo trading by analyzing the strength of each group of currency. Take for instance, if USD group is having rates less than 30% and Group pair of EUR is having rates greater than 70% or there about, you can just pick EURUSD for trading since both of them have the currency concerned in the rating.
This means you will BUY EURUSD because EUR is stronger than USD at that moment. EUR is generally strong while USD is generally weak. Placing them together is a good idea of trading to get results. There is a good probability that you will always almost get it right without issues.
Try it with demo and see what I am taking about. It is a simple strategy and it works effectively for the traders using this method for their trading.
What you need next to do when you see a signal like this, check if the currency is in the news especially medium or high impacts news, if it is, then wait till after the news to see what will happen next before taking trade if the signal is still there. But if not, then head over to Minute time frame to see if the price is going according to the signal before entering the trade. Also mind the support and resistance levels if the price is approaching any of them, if it is, wait to see breakout or reversal before deciding what to do next.
Basket trading: It can be used for what is called “Basket trading”. Basket trading is a group of a currency moving together in unison to the same direction. If the rate is below 50%, this means that the currency group is weak while the rate above 50% means that the currency group is strong. You will sell the currency group with weak rating while you will buy currency group with strong rating.
It may not be easy taking trades on each currency pair for the group, you will need a software to trade them together simultaneously, you can purchase our “Basket Trading Panel” Utility for such tasks and you will find basket trading an enjoyable and easy task otherwise be ready to take each trade on each currency of the group.
I may have to sound a note of warning, if you are not used to basket trading and you love to learn how to do it properly, you must start with demo trading and practice a lot of money-management with your account. But if you are a basket trader before, then you have the right tool for your basket trading.
You can decide to place your Mini-Currency Strength Meter anywhere on your chart window through the parameter setting.
Up/down Shift: 20 // Default setting, feel free to adjust according to your preference
Left/Right Shift: 20 // Default setting, feel free to adjust according to your preference
Signals Popup Alerts: True/false
Signals Sound Alerts: True/false
Background Color: None by default
Copy and paste the file into the MQL4 Indicators folder of the Metatrader 4 trading platform.
You can access this folder from the top menu as follows:
File > Open Data Folder > MQL4 > Indicators (paste here)