The MA Currency Strength Forex indicator for Metatrader 4 measures currency strength across the 8 major currencies with the help of a moving average.
It displays currency strength in a dashboard underneath the main MT4 chart.
The following currencies are supported: USD, EUR, GBP, CHF, AUD, CAD, JPY, and NZD.
After loading the indicator onto the chart, you will notice colored bull & bear bars.
A blue colored bar suggests that the currency is strong, while a red colored bar suggests that the currency is weak.
When the bar is colored both blue and red, currency strength is considered mixed.
Key Points
- A blue colored bar represents a strong currency.
- A red colored bar represents a weak currency.
- Mix the indicator with other analysis tools to find the best entry and exit point.
- Easy to find the most interesting currency pair(s) to trade.
- Works for any trade style (scalping, day trading, swing trading).
Free Download
Download the “MACurrencyStrength.ex4” Metatrader 4 indicator
Indicator Chart (EUR/USD D1)
The EUR/USD Daily chart below displays the MA Currency Strength Forex Metatrader 4 forex indicator in action.
Basic Trading Signals
Signals from the MA Currency Strength Forex MT4 indicator are easy to interpret and go as follows:
Buy Signal: Open a buy trade when you find a strong currency (blue bar) versus a weak currency (red bar).
In this case, the trend is considered to go upwards.
Place a stop loss below the previous swing low point (support) or apply your own stop loss method.
Exit the buy trade for a reward/risk ratio of 2.0 or better, or apply your own favorite take profit method.
Sell Signal: Open a sell trade when you find a weak currency (red bar) versus a strong currency (blue bar).
In this case, the trend is considered to go downwards.
Place a stop loss above the previous swing high point (resistance) or apply your own stop loss method.
Exit the sell trade for a reward/risk ratio of 2.0 or better, or apply your own favorite take profit method.
MA Currency Strength + Extreme Trend Explosion MT4 Forex Strategy
This MT4 strategy combines the MA Currency Strength Forex Indicator with the Extreme Trend Explosion Forex Indicator.
The MA Currency Strength indicator measures the relative strength of 8 major currencies using moving averages.
A blue bar indicates a strong currency, while a red bar indicates a weak currency.
The Extreme Trend Explosion indicator provides a green histogram for buy signals and a red histogram for sell signals.
Combining these indicators allows traders to enter trades in the direction of strong currency momentum with confirmed trend signals, ideal for intraday trading on M5 and M15 charts.
Buy Entry Rules
- Identify the strongest currency from the MA Currency Strength dashboard (blue bar) and the weakest currency (red bar) to form a currency pair for a long trade.
- Confirm that the Extreme Trend Explosion histogram is green for the same currency pair.
- Enter a buy trade on the close of the confirming candle.
- Place a stop loss a few pips below the recent swing low or support level.
- Set a take profit based on a risk-reward ratio of at least 1:2 or exit when the histogram turns red.
Sell Entry Rules
- Identify the weakest currency from the MA Currency Strength dashboard (red bar) and the strongest currency (blue bar) to form a currency pair for a short trade.
- Confirm that the Extreme Trend Explosion histogram is red for the same currency pair.
- Enter a sell trade on the close of the confirming candle.
- Place a stop loss a few pips above the recent swing high or resistance level.
- Set a take profit based on a risk-reward ratio of at least 1:2 or exit when the histogram turns green.
Advantages
- Combines currency strength analysis with trend confirmation for higher-probability trades.
- Provides a clear visual dashboard to quickly identify the strongest and weakest currencies.
- Suitable for intraday trading on M5 and M15 charts, helping traders capture strong momentum moves.
- Works well across major currency pairs with high liquidity.
Drawbacks
- The currency strength dashboard may lag slightly during sharp reversals, causing late entries.
- Small intraday moves may not reach the intended profit target, especially on shorter timeframes.
Case Study 1: EURUSD M5 Chart
The MA Currency Strength dashboard showed EUR as the strongest (blue bar) and USD as the weakest (red bar).
The Extreme Trend Explosion histogram turned green.
A buy trade was entered at 1.0982 with a stop at 1.0968.
Price moved to 1.1010, securing 28 pips before the histogram turned red, signaling exit.
Case Study 2: GBPJPY M15 Chart
The dashboard indicated GBP as the weakest (red bar) and JPY as the strongest (blue bar).
The Extreme Trend Explosion histogram confirmed a red signal.
A sell trade was entered at 152.45 with a stop at 152.75.
Price dropped to 151.95 (50 pips) before the histogram turned green, signalling exit.
Strategy Tips
- Combine dashboard readings with support/resistance levels for additional confirmation.
- Wait for both the currency strength and trend histogram to align before entering trades to avoid false signals.
- Regularly review trades to identify which currency pairs and sessions produce the most consistent results.
Download Now
Download the “MACurrencyStrength.ex4” MT4 indicator
Adjustable Parameters & Settings
Price type of MA, method of MA, period of MA, maximum bars to compute, colors, width, style.
Feel free to explore the indicator’s different parameters and settings to create your own personalized indicator setup.
More Info About This Indicator
Recommended Currency pairs: Any
Trading Platform: MT4
Time Frames: M1, M5, M15, M30, H1, H4, D1, W1
Indicator Type: Currency strength
