About the Currency Strength Meter indicator
The Currency Strength Meter indicator for MT4 helps traders identify which currencies are performing strongest and weakest in real time.
Instead of guessing which pair to trade, the indicator ranks selected currency pairs inside a dedicated subwindow, making relative strength comparisons simple and fast.
The indicator allows traders to monitor up to four currency pairs at the same time.
These pairs can be changed directly from the input settings, giving full control over which markets are analyzed.
By comparing strength levels, traders can focus on pairs where momentum imbalance is highest.
The core idea is straightforward.
Strong currencies tend to continue performing well, while weak currencies often remain under pressure.
Trading the strongest currency against the weakest one increases the likelihood of sustained movement.
This approach works well for scalping, day trading, and swing trading across all market conditions.
Free Download
Download the “Currency Strength Meter.mq4” MT4 indicator
Key Features
- Displays relative currency strength in a separate subwindow.
- Allows comparison of multiple currency pairs at once.
- Fully customizable currency pair selection.
- Helps identify strong versus weak market combinations.
- Reduces time spent scanning multiple charts.
Indicator Chart
The chart below shows the Currency Strength Meter indicator plotting strength levels for selected currency pairs.
Higher readings represent stronger currencies, while lower readings indicate weaker ones.
Traders use this information to match strong currencies against weak counterparts and focus on pairs with the clearest directional potential.
Guide to Trade with Currency Strength Meter
Buy Rules
- Identify the strongest currency using the strength meter.
- Pair it against a currency showing weak readings.
- Open a buy trade on the strong versus weak pair.
- Trade in the direction of expanding strength difference.
Sell Rules
- Identify the weakest currency on the strength meter.
- Pair it against a currency showing strong readings.
- Open a sell trade on the weak versus strong pair.
- Focus on pairs where weakness persists.
Stop Loss
- For buy trades, place the stop loss below the most recent support.
- For sell trades, place the stop loss above the most recent resistance.
Take Profit
- Take profit when strength levels begin to converge.
- Exit partially near key price levels.
- Close the trade if the strength ranking reverses.
- Hold trades longer when the strength gap remains wide.
Currency Strength Meter and Trend Master Forex Strategy for MT4
This MT4 strategy combines currency strength analysis with trend-based entries using the Currency Strength Meter Indicator and the Trend Master Indicator.
The Currency Strength Meter allows traders to compare the strength of multiple currencies in one subwindow, helping identify the strongest and weakest currencies at any given moment.
This helps select currency pairs with the highest probability of a trending move.
The Trend Master indicator provides clear blue arrows for buy signals and red arrows for sell signals.
By combining these indicators, traders can align entries with both currency strength and trend direction for more effective trades, suitable for M5 and M15 intraday trading.
Buy Entry Rules
- Identify the strongest currency and the weakest currency using the Currency Strength Meter.
- Select the pair that combines the strongest currency as the base and the weakest as the quote.
- Wait for a blue arrow from the Trend Master indicator on the selected pair.
- Enter a buy trade at the close of the candle where the blue arrow appears.
- Place a protective stop loss below the recent swing low.
- Take profit at the next resistance level or when a red Trend Master arrow appears.
Sell Entry Rules
- Identify the weakest currency and the strongest currency using the Currency Strength Meter.
- Select the pair that combines the weakest currency as the base and the strongest as the quote.
- Wait for a red arrow from the Trend Master indicator on the selected pair.
- Enter a sell trade at the close of the candle where the red arrow appears.
- Place a stop loss above the recent swing high.
- Take profit at the next support level or when a blue Trend Master arrow appears.
Advantages
- Combining currency strength with trend signals increases trade probability.
- Currency Strength Meter helps identify the best pairs to trade at any moment.
- Trend Master provides entry signals with blue and red arrows.
- Works on multiple timeframes for intraday trading.
- Reduces trading countertrend moves by focusing on the strongest vs the weakest pairs.
Drawbacks
- Relying on currency strength alone may give delayed entries if the trend has already started.
- Trend Master arrows can sometimes appear too late in fast-moving markets.
- Frequent monitoring is required to catch optimal setups, which can be time-consuming.
Example Case Study 1
On EURUSD M5, the Currency Strength Meter showed EUR as the strongest currency and USD as the weakest.
A blue arrow appeared from the Trend Master indicator, confirming a buy opportunity.
The trade was entered at candle close with a stop loss a few pips below the recent swing low.
Price rose steadily, and the trade was closed at the next resistance level, resulting in a 28 pip gain.
Using currency strength helped select the best pair for momentum.
Example Case Study 2
On GBPJPY M15, the Currency Strength Meter indicated GBP as the weakest currency and JPY as the strongest.
A red arrow from Trend Master appeared, signaling a sell.
The trade was entered at candle close with a stop loss a few pips above the recent swing high.
Price moved downward, and the trade was closed when a blue arrow appeared, securing a 35 pip profit.
Combining strength and trend alignment helped capture a clean intraday move.
Strategy Tips
- Always select pairs based on the strongest versus weakest currencies for higher probability setups.
- Use M5 for fast intraday scalping and M15 for more controlled trades.
- Wait for the Trend Master arrow confirmation before entering, even if currency strength is strong.
- Track which currency combinations produce the most consistent setups.
- Close trades early if an opposing Trend Master arrow appears before expected profit levels.
- Focus on high liquidity pairs for smooth execution.
- Consider partial profit-taking at intermediate levels to reduce risk while letting trends run.
Download Now
Download the “Currency Strength Meter.mq4” Metatrader 4 indicator
FAQ
How often does the strength meter update?
The indicator updates continuously based on current market data, reflecting real-time changes in currency strength.
Can I trade using only this indicator?
Yes, many traders use it as a standalone market selection tool before applying their usual entry methods.
Does it work during low-volatility sessions?
During quiet sessions, strength differences may be smaller, but the indicator still helps highlight relative performance.
Summary
The Currency Strength Meter indicator offers a practical way to identify which currency pairs deserve attention at any given moment.
Ranking strong and weak currencies in one view helps traders focus on pairs with directional potential instead of scanning multiple charts.
Its flexibility and simplicity make it suitable for different trading styles and timeframes, providing a clear edge in market selection and trade planning.
