Currency Heatmap Indicator

Currency Heatmap Indicator

Currency Heatmap Indicator For MT4 identifies the strongest and weakest forex currency and helps traders to trade strongest against the weakest currency.

The Currency heatmap indicator for MT4 helps forex traders to identify the strength and weakness of a currency. The indicator is very useful for forex trading by placing the strongest currency against the weakest currency. As a result, traders tend to stay in the correct direction of the price trend.

Moreover, this method calculates the strength of a currency rather than a currency pair. So, this method of technical analysis helps traders to benefit from the overall strength or weakness of a currency across the board.

The indicator is simple to understand and is helpful for new and advanced forex traders. However, traders should be familiar with trend confirmation using price action to use this indicator profitably. Though the indicator works well in all time frames, trend signals of higher time frame chart provide profitable trade setups.

Currency Heatmap Indicator For MT4 Trading Signals

The above GBPAUD H4 candlestick price chart shows the currency heatmap indicator for MT4 in action. The indicator plots the 8 major currencies as a matrix. These 8 major currencies are placed both on the vertical and horizontal rows.

The color coding is simple to understand and provides a quick identification of the strongest and weakest currency pairs. Currency pairs that show a Limegreen color indicates a bullish market condition. So, traders should buy the currency pairs that are LimeGreen with a stop loss below the previous swing low.

Similarly, a Red label of a currency pair indicates a strong down trend in place. So, traders should enter the market with a sell trade with a stop loss above the previous swing high.

Conclusion
In summary, the currency heatmap indicator for MT4 is an essential trading tool for forex traders trading the strongest against the weakest currency.