Currency Meter 6.0
Metatrader Indicator (MT4/MT5)
Trading strong currencies against weak currencies is always the safest play. The Currency Meter indicator measures relative strength between major currencies and makes instrument selection easier.
- Find strong and weak currencies at a glance
- Compare one currency against another easily
- Is a currency strengthening? Look for a longs
- Is a currency weakening? Look for shorts
- It implements a multi-timeframe dashboard
The basic idea is to attack weak currencies using strong ones as counter currencies and vice-versa. Buy strength against weakness and short weakness against strength.
- It is a top-quality confirmation for trades
- The indicator needs no optimization at all
- Customizable look-back periods
- The indicator is non-repainting
Interpreting the indicator is fairly easy. It compares the current and previous price of 27 currency pairs and counts how many times has each currency gained or lost against all others. Since there are only 8 currencies, the maximum score is +7, which means a currency gained against all others, and the minimum score is -7, which means a currency lost against all others. This logic is calculated for each timeframe and displayed in a dashboard that helps you find the stronger and weaker currencies across all timeframes.
Anatomy of the indicator
The Currency Meter indicator evaluates several currency pairs and finds, in absolute terms, which currency has gained or lost the most against all others during a determined period of time.
The currency pairs analyzed are EURUSD, GBPUSD, USDJPY, AUDUSD, USDCHF, USDCAD, EURCHF, NZDUSD, AUDCAD, AUDCHF, AUDNZD, AUDJPY, CADCHF, CADJPY, CHFJPY, EURAUD, EURCAD, EURGBP, EURJPY, EURNZD, GBPAUD, GBPCAD, GBPCHF, GBPJPY, GBPNZD, NZDCAD, NZDCHF, NZDJPY, which are present in all metatrader brokers.
The proper usage of the indicator is to buy strength against weakness and vice-versa. But it can also be used confirm a trade on any given pair triggered by technical analysis. The indicator displays the strength of each currency, for each timeframe.
Finding suitable pairs for trading
Given the example chart displayed above, using H4 as a reference, we should look for trades in the following pairs and directions using our favourite entry strategy. We just have to trade those pairs that pit strong and weak currencies against each other. Given the above example:
- GBPJPY (long)
- JPYCHF (long)
- EURJPY (short)
- GBPUSD (short)
- USDCHF (long)
- ≡ Input parameters
When loading the indicator or EA to any chart, you will be presented with a set of options as input parameters. Don't despair if you think they are too many, because parameters are grouped into self-explanatory blocks.
- This is the main indicator period.
- Look Back
- This parameter is the amount of bars to evaluate to the past to find out if any particular currency pair as gained or lost against another.
- Max History Bars
- Amount of past bars to evaluate when the indicator loads.
- Suffix and Prefix
- Type the prefix and suffix for the symbols in the "Suffix" and "Prefix" parameter in the indicator inputs, if applicable. For instance, if your EURUSD symbol is named "EURUSDpro", then "pro" is the suffix. Other example, if your EURUSD symbol is named "fxEURUSDmini", then "fx" is the prefix and "mini" is the suffix. The indicator requires this if the symbol names are not standard, to construct the correct symbols names.
- Drawing Settings
- Choose the font sizes to construct the dashboard and labels.
- ? FAQ
- Does the indicator repaint?
- No, it does not.
- Can I customize the currencies and pairs analyzed?
- No, you can't. The indicator analyzes major pairs and crosses only.
- Some values are missing!
- Make sure to display all symbols in the market watch before loading the indicator.
- Can I add Gold or Oil to the dashboard?
- No, you cannot. We cannot either because Gold is only crossed against the USD in the XAUUSD pair. In order to add it, we would need the broker to offer 6 or 7 gold pairs crossed against different currencies.