About the FX Correlator Indicator
The FX Correlator indicator for MetaTrader 4 is a currency strength analysis tool that measures and compares the performance of the eight major currencies in real time.
These currencies include EUR, GBP, AUD, CHF, JPY, NZD, CAD, and USD.
Instead of focusing on a single currency pair, the indicator analyzes each currency individually and plots them as colored lines in a separate chart window.
This allows traders to see which currencies are gaining strength and which are losing momentum across the market.
FX Correlator helps traders select better pairs by matching strong currencies with weak ones.
This approach improves trade selection and reduces random entries.
Free Download
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Key Features
- Displays real-time strength lines for 8 major currencies
- Helps identify strong versus weak currency combinations
- Works on all MT4 time frames
- Appears in a separate chart window for focused analysis
- Supports trend-following and momentum-based strategies
Indicator Chart
The FX Correlator indicator chart shows multiple colored lines in a separate MT4 window. Each line represents the strength of one major currency over time.
Traders look for a wide separation between strong and weak currency lines to identify potential buy or sell opportunities.
Guide to Trade with the FX Correlator Indicator
Buy Rules
- Identify a strong currency line near the top
- Identify a weak currency line near the bottom
- Select a currency pair that matches this strength difference
- Enter a buy trade after confirmation on the price chart
Sell Rules
- Identify a weak currency line near the bottom
- Identify a strong currency line near the top
- Select a currency pair that reflects this imbalance
- Enter a sell trade after confirmation on the price chart
Stop Loss
- For buy trades, position it below a recent low.
- For sell trades, position it above a recent high.
- Allow enough space for normal price fluctuation.
Take Profit
- Target previous highs or lows on the price chart
- Close trades when currency lines start converging
- Use partial exits when momentum slows
Practical Trading Tips
- Trade only when lines show strong separation.
- Avoid trades when lines are tangled.
- Use higher time frames for stronger signals.
- Confirm entries with price action.
- Do not trade all pairs at once.
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.
Download Now
Download the “grail EMA.mq4” indicator for Metatrader 4
FAQ
What does the FX Correlator indicator measure?
The indicator measures relative currency strength by analyzing price movement across multiple pairs.
Each line reflects how strong or weak a currency is compared to others.
Does FX Correlator repaint?
The lines update in real time as price changes. Historical data remains stable once candles close.
Which time frame works best?
H1 and H4 are popular choices for stable strength readings. Lower time frames can be used but require stricter risk control.
Can FX Correlator be used alone?
It works best as a pair selection tool. Combine it with a trend or entry indicator for better timing.
Summary
The FX Correlator indicator for MT4 gives traders a broader view of the forex market by tracking currency strength instead of single pairs.
This approach improves trade quality and helps avoid low-probability setups.
The indicator is easy to use and suitable for all experience levels.
It pairs smoothly with trend-based or entry indicators from the strategy section, improving alignment with dominant market flows.
