MT4 Currency Power Indicator

MT4 Currency Power Indicator

MT4 currency power indicator best to identify bullish and bearish strength-based forex trading BUY and SELL signals.

Categories: MT4, Informational

The MT4 currency power indicator is a version of the currency strength meter. The indicator is light on resources and calculates the results pretty quickly. Moreover, the indicator displays results according to the currency strength and helps the traders to understand the weakest and strongest currencies at a glance. Additionally, it shows the currencies of the current price chart in a different color. So, forex traders can understand the bullish and bearish nature of the currencies and BUY and SELL them accordingly.

Forex traders can place the indicator on any chart time frame as the indicator is independent of the time frame. Moreover, the indicator is best suited for new and advanced forex traders. New traders can understand the strength of the currencies and identify the best currency pairs to BUY and SELL. However, advanced forex traders can use currency power to formulate advanced trading strategies. Additionally, forex traders can download the indicator for free and install it easily.

MT4 Currency Power Indicator Trade Setup

The above EURUSD H1, candlestick price chart, shows MT4 currency power indicator in action. Additionally, the results are in a square column on the price chart. Moreover, the indicator shows the currencies in the current chart in a different color.

The highest value indicates the most bullish, and the lowest means the most bearish currency. So, forex traders can combine the bullish and bearish currency to form a currency pair and trade them in the pair’s direction. And exit the trade once the currency reverses its strength.

For example, traders can enter a BUY trade if the primary currency of the pair has the most bullish power and place a stop loss below the previous swing low. If the primary currency loses the strength or the secondary currency of the pair gains strength, traders should exit the trade. On the other hand, traders can book profits with a good risk-reward ratio.

Similarly, if traders have already entered a position, they can use the currency power to monitor the trade. The indicator shows the pair in different colors and helps the trader identify them. Forex traders should avoid trading currencies having equal powers or almost identical power. For best results, traders should choose the strongest against the weakest currency, which translates to trading the most bullish against the most bearish.

Conclusion
The !MT4 currency power indicator is an essential tool for forex traders using the strength to identify the bullish and bearish currencies. Indeed, the idea of pitting the strongest against the weakest as a trading method is practiced by many forex traders.