The Currency Strength Alerts MT4 forex indicator displays the trend strength for the 8 major currencies: NZD, EUR, GBP, USD, JPY, AUD, CAD and CHF.
It ranks the 8 currencies from very strong to very weak in a table directly visible on the MT4 activity chart.
How to trade with the Currency Strength indicator?
As a general rule, always trade the strongest currency versus the weakest currency.
For example, as shown in the NZD/USD chart below, the NZD currency is the strongest while the USD currency is the weakest, so it makes sense to buy the NZD/USD pair.
Imagine the USD currency is the strongest while the NZD currency is the weakest, in this case we would sell the NZD/USD currency pair.
The NZD/USD 5-Minute chart below displays the Currency Strength Alerts Metatrader 4 Forex indicator in action.
Basic Trading Signals
Signals from the Currency Strength Alerts MT4 forex indicator are easy to interpret and goes as follows:
Buy Signal: Buy the strongest currency versus the weakest currency. Confirm the buy trade with price action or additional technical indicators.
Sell Signal: Sell the weakest currency versus the strongest currency. Confirm the sell trade with price action or additional technical indicators. See the NZD/USD example above for better understandings.
Trade Exit: Use your own method of trade exit.
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: Chart pattern indicator
Customization options: Variable (currency pairs, alerts, send email) Colors, width & Style.
Time frames: 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month
Type: currency strength
Copy and paste the currency-strength-alerts.mq4 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)