As you look to increase your profit potentials, there are a couple of tools you can leverage to help you achieve your aim. One of such tools is the Accurate Currency Strength Meter. However, the meter indicator works differently from the regular technical indicators you already know. Just like technical indicators, Currency Meter can give you a heads-on to maximize your profit potentials and the reason why it is considered as a highly accurate indicator.
You can get best out of meter if you combine it with any of the technical indicators. Typically, the strength meter measures the strength and weakness of different currencies and display the result in a visual way for everyone to witness currencies that are strong/weak in multiple currency pairs.
Aside from measuring currencies’ strength or weakness, the currency strength meter also helps traders to trade without second-guessing or emotions. So, if you are struggling with emotions or second-guessing while trading, the strength meter is for you. With that in mind, let’s dive deeper to see how to download and install the meter. Additionally, this article will look at how to read and use the meter.
What is the Accurate Currency Strength Meter Indicator?
Simply put, the Currency Strength is one of the most accurate tools used by veteran traders to measure or identify the strength of currencies in relation to other currencies. With this tool, you can tell in real-time how strong or weak the currency pair you intend to trade is. With this information in mind, you’re sure of making the most profit consistently.
Are there other benefits of using the Currency Meter? Of course, the major advantage of using this meter is that it can help you to avoid unintentional hedging. In the FX market, unintentional hedging has to do with the ability to measure the correlation strength of two or more currency pairs in advance. This tool will help you not to indulge in unintentional hedging. It is also free of charge to download on either your MT4 or MT5 trading terminal.
How to Read Meter
We will use the table below to show you how to read Accurate Currency Strength Meter Indicator.
From the above table, you can see that any currency with a value of 60 or above is considered a strong currency. Such currencies are coded in green. Similarly, any currency with a value of 40 and below is regarded as a weak currency. The color for weak currencies is pink. The currencies that are neither strong nor weak are neutral and are coded yellow. By all means, avoid currencies in the yellow band. You should only see the pink ones and buy green ones.
Look at the table again; you can see that some strong and weak currencies are on different timeframes – 15 minutes, 1 hour, 4 hours, and 1 day. This means you should always keep the timeframe you want to trade in mind, as there is nothing like a perfect timeframe. For example, for the H4 timeframe, the weak currency there is AUD, while the strong currency there is USD and JPY.
When looking at breakouts to trade or trend retracements, which pairs should you consider? Your best bet is to match a red with green on the strength meter. In this case, a good pair is AUDUSD or AUDJPY. Let’s caution at this point – on no account should you trade two different strong currencies or weak currencies. Why? The strength meter would go in one direction, whether you go long or short. The two strong or weak currencies will fight against each other.
Looking at the chart, precisely at the H1 timeframe, avoid trading GBPAUD or CADCHF pairs, because they are all weak currencies and are in pink. The general rule of thumb of using this tool is to sell weak currencies and buy only strong currencies.
How To Download Indicator
The correlation matrix is currently one of the best strength meters on the market for MT4 and MT5. You can download, install, and use the strength meter together with an Expert Advisor (EA). The MetaTrader Supreme Edition is a great plugin that comes with an in-built correlation matrix and other custom technical indicators.
This means if you can download and install MetaTrader Supreme Edition, you will automatically have a currency strength indicator on your chart.
Below is how to download the MetaTrader Supreme Edition:
1. Open an account with a broker.
2. Download either the MT4 or MT5 trading terminals
3. Download MetaTrader Supreme Edition from a reputable marketplace
4. Sign in to your trading account
5. Head straight to the navigation window under EAs
6. Look out for the currency correlation meter from the list of the MetaTrader Supreme Edition tools.
As you can see, a reliable forex broker and the right trading platform can impact the download and installation of this tool.
Combining The Strength Meter With Technical Indicators
To make the most of the Accurate Currency Strength Meter, you should combine it with technical indicators like the MACD indicator, the Gap indicator, the breakout indicator, as well as the support and resistance indicators.
Since combining the strength meter with other indicators will not only improve your earnings, but it will also enhance your trading strategies. Plus, you can trade as many currency pairs as you wish.
Final Words On Accurate Currency Strength Meter
The Accurate Currency Strength Meter is a tool that most veteran traders used to increase their profitability in real-time. The major function of the strength meter is to help traders identify or measure the weakness or strength of a currency in a currency pair.
While if you’re a newbie, we encourage you to start using the strength meter with a demo account first until you’re confident using a live account. This will increase your knowledge of the tool and also build your trading confidence.
Right here on our website, we have a list of best forex indicators you can combine the strength meter to increase your earning potentials. Therefore, feel free to check them out through this link.