Have you ever wondered if there was a way to determine the strength of currencies so you could trade a strong and weak currency? Well, there is a way. The Currency Power Meter indicator is the way.
The Currency Power Meter Indicator
The currency power meter is an indicator that measures the individual strengths of currencies. With this knowledge, a trader can leverage the weakness and strengths of currencies to choose potentially lucrative pairs. You may also call it a currency strength indicator.
Many factors affect the strength of currencies. Some include interest rates, economies, and news. With the currency strength meter forex indicator, however, a forex trader can see the strengths of these forex indicators without having to do any extra computing.
This strength-determining indicator uses histograms to portray the strength of each currency. Every currency has a wide and narrow histogram in front of it. The wide histogram depicts the currency strength on the daily chart, while the narrow histogram depicts the currency strength on any other time frame you are on.
How to Use the Currency Power Meter Indicator in Your Trading
Using the currency strength indicator is simple. Load the indicator and compare the strengths of currencies. Pick a strong and a weak one. Then open the currency pair chart to look for trade entries using other forex analysis tools, such as other indicators and market structures.
For instance, the AUD has a strength of 7.5 on the daily time frame, and the EUR has 2.7. So you want to trade the EURAUD in the daily or 4-hour timeframe. Because the AUD has higher strength and the EUR has a low strength, you look for a sell signal on the currency pair.
So, you go to the chart, do your analysis, and be sure that your forex analysis agrees that you buy. Otherwise, disregard the information on the currency power meter indicator.
The Wrong Way to Use the Indicator in Your Trading
Doing any of these is a misuse of the indicator:
- The currency strength indicator is not an entry or exit indicator. When you see that a currency is strong at the moment, you don’t just pair it up with a weak currency and make trades without proper analysis.
- If you are a scalper or trade the smaller time frames, do not rely heavily on this indicator. The reason is that high-impact news is more likely to cause temporary hyper-volatility in the lower timeframes. And this hypersensitivity could affect the output calculation of the indicator.
Who is The Currency Power Meter Indicator Best for?
The currency power meter indicator is best for beginner and expert forex traders because it has a simple interface and is easy to use. Also, forex day traders and swing traders would find this a helpful indicator.
Currency Power Meter MT4 Forex Indicator Free Download
Read More Gap Sniffer Pro Forex EA FREE Download