In this article, we will explore the Currency Strength indicator, which displays the relative strength of major currencies on a scale from +10 to -10. The indicator provides individual strength ratings across multiple timeframes such as M5, M30, and H4, which are then consolidated into a single score for each currency. Currency Strength serves as a broad guide to current market trends, suggesting potential trading opportunities based on these relative strengths.
The Currency Strength indicator shows the relative strength of major currencies, on a scale of +10 to -10. Because the scores are relative, their total across all the currencies is always zero.
The indicator shows individual strength ratings for three timeframes, such as M5, M30, and H4. These three values are then combined into a single headline score for each currency.
The indicator is a broad guide to current market trends. Using the above image as an example, if EUR is relatively weak (-2.0) and JPY is relatively strong (+2.1), the indicator therefore suggests that selling EUR/JPY is more likely to be successful than buying it.
How to install Indicator Overview?
To download and install the Pro Trading Tools please follow these steps:
- Login to FXTM profile > Hub > Pro Trading Tools
- Download FX Blue or Trading Central for your Platform (Meta Trader 4 or Meta Trader 5)
- Run the downloaded FX Blue and Trading Central files and apply them to your chosen MetaTrader Platform when prompted.
- Relaunch the MetaTrader platform. You’ll find your FX Blue* and Trading Central tools in the ‘Navigator panel under ‘Indicators’ and/or ‘Expert Advisors’.
Note: FX Blue tools will appear in MetaTrader labeled as FXTM or Figaro app suite.
Using the Currency Strength indicator
Adding the indicator to a chart
You add the indicator to a chart in the usual MT4/5 way, either by dragging it from the Navigator onto a chart, or by double-clicking on it in the Navigator. You can also use standard MT4/5 features such as adding the indicator to your list of Favorites, or assigning a Hotkey to it.
You can then control the indicator's display and behaviour using the settings on its Inputs tab.
Currencies
The indicator can show up to 8 currencies, which you can enter into the indicator's settings as a comma-separated list. The list must always include USD, and this will be automatically added if you do not include it.
Display order
You can choose either to sort the display of currencies by strength, or to display them in the same order as the comma-separated list.
Calculation settings
The indicator calculates currency strength using a number of historic bars, defaulting to 50, and using three different timeframes, defaulting to M5, M30, and H4. You can change these settings on the Inputs tab. For example, if you change the timeframes to H4, D1, and W1, then the calculation will become much longer-term and less volatile.
You can also alter the weightings which are assigned to the three timeframes. By default, they are weighted equally. If you change the settings from 1/1/1 to 2/1/1, then the first timeframe, such as M5, will count twice as strongly towards the overall score as the other timeframes.
Symbol suffix
Your account may use suffixes on its symbol names, such as EURUSD+. The indicator will attempt to auto-detect any suffix. However, particularly if multiple versions of each symbol are available on your account, you may need to help the indicator by setting the suffix parameter explicitly. For example, if the symbols names on your account are EURUSD+, GBPUSD+ etc., then you would change the suffix setting to +.
