The free FX Correlator indicator for mt4 (Metatrader 4) measures and displays currency strength lines for the 8 major currencies.
The major currencies include: EUR, GBP, AUD, CHF, JPY, NZD, CAD, and USD.
The indicator appears in a separate MT4 chart window in the form of colored lines. Each line represents one currency.
How to trade with the FX Correlator?
- Buy a strong currency versus a weak currency.
- Sell a weak currency versus a strong currency.
The FX Correlator indicator can be used for both entry and exit signals or to confirm buy & sell trade setups issued by your favorite trading systems or strategies.
Free Download
Download the “grail EMA.mq4” indicator for MT4
Indicator Chart (EUR/USD M15)
The example chart below displays the FX Correlator mt4 indicator in action on the trading chart.
Tips:
Feel free to use your own favorite trade entry, stop loss and take profit strategy to trade with the FX Correlator indicator.
As always, trade in agreement with the overall trend and practice on a demo account first until you fully understand this indicator.
Please note that even the best trading indicator cannot yield a 100% win rate over long periods.
Indicator Specifications & Inputs:
Trading Platform: Developed for Metatrader 4 (MT4)
Currency pairs: Works for any pair
Time frames: Works for any time frame
Trade Style: Works for scalping, day trading and swing trading
Input Parameters: Variable (inputs tab), color settings & style
Indicator type: Currency strength
Does it repaint? No.
Day Trading Strategy: FX Correlator + X Super Trend Candles (MT4)
This day trading strategy combines the FX Correlator Indicator and the X Super Trend Candles Indicator to identify strong intraday currency moves.
The FX Correlator displays multiple currency strengths and weaknesses (EUR, GBP, AUD, CHF, JPY, NZD, CAD, USD) in a subchart.
Traders look to buy strong currencies against weak ones and sell weak currencies against strong ones.
The X Super Trend Candles provide additional confirmation: green candles indicate a buy signal and red candles indicate a sell signal.
This strategy works best on 15-minute to 1-hour charts during London and New York trading sessions.
Buy Entry Rules
- Identify the strongest currency and the weakest currency using the FX Correlator.
- Enter a buy trade on the pair where the strong currency is the base and the weak currency is the quote.
- Confirm the buy entry with a green candle from the X Super Trend Candles indicator.
- Set a stop loss below the recent swing low or nearest support level.
- Set take profit at a 1:2 reward-to-risk ratio or exit if the X Super Trend Candles turn red.
Sell Entry Rules
- Identify the weakest currency and the strongest currency using the FX Correlator.
- Enter a sell trade on the pair where the weak currency is the base and the strong currency is the quote.
- Confirm the sell entry with a red candle from the X Super Trend Candles indicator.
- Set a stop loss above the recent swing high or nearest resistance level.
- Set take profit at a 1:2 reward-to-risk ratio or exit if the X Super Trend Candles turn green.
Advantages
- Combining currency strength analysis with candle confirmation increases trade accuracy.
- Allows traders to focus on the most powerful intraday trends across multiple pairs.
- Visual signals make identifying strong vs weak currency pairs straightforward.
- Non-repainting indicators provide reliable entries and trend confirmation.
- Applicable across multiple major and minor currency pairs.
Drawbacks
- Requires monitoring several currency pairs simultaneously, which can be overwhelming.
- Signals may lag slightly if a strong trend is emerging rapidly.
- Trend reversals caused by economic news can trigger stop losses quickly.
- Some cross-pairs may show weaker correlation, reducing the strategy’s effectiveness.
- High spreads during low-liquidity periods can reduce profitability.
Case Study 1
On the GBP/USD 30-minute chart, the FX Correlator showed GBP as the strongest currency and USD as the weakest.
A green X Super Trend candle appeared.
A buy trade was entered at 1.3850, with a stop loss at 1.3825 and a take profit at 1.3900.
The trade reached the target price within 2 hours, yielding a 50-pip gain.
Case Study 2
On the AUD/JPY 1-hour chart, the FX Correlator showed AUD as the weakest currency and JPY as the strongest.
A red X Super Trend candle appeared.
A sell trade was entered at 86.50, with a stop loss at 86.85 and a take profit at 85.85.
The trade reached was closed within 3 hours, capturing 65 pips.
Strategy Tips
- Trade major and popular minor pairs such as GBP/USD, EUR/JPY, AUD/JPY, and USD/CHF for reliable signals.
- Combine with intraday support and resistance levels or pivot points to filter entries.
- Use alerts for the FX Correlator and X Super Trend Candles to act quickly on strong setups.
- Consider trailing stops to secure profits during extended intraday trends.
- Limit daily trades to the top 3–4 strongest signals to maintain focus.
