Watch the testing video here:
Currency Strength Meter Indicator
Introduction to the Currency Strength Meter Indicator
The Currency Strength Meter indicator shows which currencies are trading STRONG against the WEAK currencies!
The indicator is displayed in a separate window placed just below the main trading chart, and it provides the strength momentum of the 8 major currencies:
The indicator is based on the mathematical decorrelation of 28 cross currency pairs.
It uses the percentage difference in Linear-weighted averaging (LWMA) of the closing prices.
The default indicator settings can be modified directly from the input tab. Feel free to experiment with the settings and parameters to fit your personal preferences.
How to use it in trading?
Currencies that are significantly sloping away from each other are candidates for trend trading.
Currencies that run parallel to each other are ranging and can be traded from the top of a band or channel to the bottom with confidence.
Using the indicator in multiple timeframes is an excellent way to see whether a currency is rising or falling across several timeframes, adding a further dimension to your analysis, and allowing you to quantify the risk on any trade in a more detailed way.
How to set up the Currency Strength Meter indicator in MT5?
Copy and paste the CURRENCY_STRENGTH_INDEX.mq5 or CURRENCY_STRENGTH_INDEX.ex5 indicator files into the MQL5 folder of the Metatrader 5 trading platform.
You can gain access to this folder by clicking the top menu options, which goes as follows:
File > Open Data Folder > MQL5 > Indicators (paste here).
Now go to the left side of your MT5 terminal. In the Navigator find the gauge name, right-click it and select Attach to the chart.
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