About the MA Currency Strength Indicator
The MA Currency Strength Forex indicator for MT4 is designed to measure and compare the strength of the eight major currencies using a moving average calculation.
It helps traders quickly identify which currencies are gaining strength and which are weakening.
Once installed, the indicator displays a clear dashboard below the main price chart.
This dashboard uses colored bull and bear bars to visually represent currency strength, allowing traders to scan the market in seconds.
The supported currencies include USD, EUR, GBP, CHF, AUD, CAD, JPY, and NZD.
By comparing strong currencies against weak ones, traders can easily focus on the most promising currency pairs.
Free Download
Download the “MACurrencyStrength.ex4” Metatrader 4 indicator
Key Features
- Measures relative currency strength using moving averages.
- Displays an intuitive dashboard below the MT4 chart.
- Blue bars indicate strong currencies.
- Red bars indicate weak currencies.
- Mixed colors signal neutral or changing conditions.
- Helps identify the best currency pair combinations.
- Suitable for scalping, day trading, and swing trading.
Indicator Chart
The chart shows the MA Currency Strength indicator displayed beneath the price chart.
Each currency is represented by a colored bar, allowing traders to quickly spot strength imbalances.
By comparing blue and red bars, traders can determine trend direction and select currency pairs where momentum favors continuation or rotation.
Guide to Trade with MA Currency Strength
Buy Rules
- Identify a currency showing a strong blue bar.
- Pair it against a currency showing a weak red bar.
- Confirm the pair direction on the price chart.
- Open a buy trade on the strong-versus-weak currency pair.
Sell Rules
- Identify a currency showing a weak red bar.
- Pair it against a currency showing a strong blue bar.
- Confirm bearish price behavior on the chart.
- Open a sell trade on the weak-versus-strong currency pair.
Stop Loss
- Place the stop loss beyond the most recent consolidation range.
- Increase stop distance slightly during high-volatility sessions.
Take Profit
- Scale out partial profits at previous intraday highs or lows.
- Close the full trade when currency strength bars begin to converge.
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
FAQ
How is currency strength calculated?
The indicator uses moving average data to evaluate relative performance across multiple currency pairs, then aggregates that data into a single strength reading.
Is this indicator better than single-pair analysis?
It provides a broader market perspective, which helps traders avoid trading pairs with weak momentum or conflicting flows.
Can it be combined with other indicators?
Yes. Many traders combine it with trend, breakout, or price action tools to refine entry timing.
Which sessions work best?
The London and New York sessions typically produce the strongest and most reliable currency strength shifts.
Summary
The MA Currency Strength Forex indicator for MT4 helps traders focus on the strongest opportunities by comparing currencies instead of guessing pair direction.
Its dashboard layout makes market scanning fast and efficient.
The indicator supports all trading styles and works across all major pairs.
With proper confirmation, it can significantly improve trade selection and consistency.
