Currency Power Meter Indicator for MetaTrader 4 Download - Free - [trading finder]

The Currency Power Meter indicator is one of MetaTrader 4's indicators that determines the relative strength of currencies. This indicator calculates the percentage difference between the closing price of each day's candle and the previous day's, thus indicating the strength of that currency.

For instance, if the strength of the EUR is 0.25% and the strength of the USD is 0.12% in the daily timeframe since the EUR is more potent than the USD, you can look for buying opportunities or signals in the EURUSD pair in the daily or 4-hour timeframe.

Indicator Table

Overview

One key to successful trading is selecting the right trading symbols. Traders can use this indicator to compare the strength of different currencies and choose suitable currency pairs for their trades. Numerous factors, such as interest rates and economic news, influence currency strength. However, this indicator can show the relative strength of currencies without additional calculations.

Uptrend Signals

The Currency Power Meter indicator is a valuable tool for identifying potential uptrends. For instance, in the EUR/AUD pair daily, the indicator shows the EURO's strength at 0.04% and the AUD at -0.33%. With the EURO stronger than the AUD, an uptrend in the EUR/AUD pair in the daily timeframe could be anticipated.

Downtrend Signals

The chart below shows the EUR/USD pair in a 4-hour timeframe. The Currency Power Meter indicates that the EURO is weaker (0.06%) than the USD (0.11%), suggesting a potential downward trend for the EUR/USD pair.

Settings of the Currency Power Meter Indicator

• Market Watch should be Show All: Click on MetaTrader's "Market Watch" window and select "Show All" to activate all symbols.
• Time Frame: Set the timeframe for the calculations. For example, choose "1 Day".
• Number of Candles for Calculate: This determines how many past candlesticks are used in the calculations. You can set it to 1 for better results.
• Clr1: You can choose the desired color for displaying the numbers.

Explanation: To calculate the strength of currencies across different timeframes, you can select the "Current" option to generate appropriate output for all timeframes.

Summary

This indicator, available on the MetaTrader 4 platform, is highly beneficial for trading forex currency pairs. Its strength lies in identifying trends in higher timeframes, although it may not yield optimal results for scalpers in lower timeframes. By understanding this, traders can incorporate the strengths and weaknesses of currencies into their trading strategies to select currency pairs with higher profit potential.