About the Indicator
The Currency Power Indicator for 8 Major Currencies is a free MetaTrader 4 (MT4) tool designed to display and rank the strength of the eight major currencies: USD, EUR, JPY, GBP, AUD, CAD, NZD, and CHF.
Positioned in the lower-left corner of your chart, this mini dashboard provides real-time insights into currency strength, helping traders identify high-probability trading pairs by comparing strong currencies against weak ones.
Whether you’re a scalper, day trader, or swing trader, this indicator serves as a valuable addition to your trading toolkit.
As a general rule:
- Buy a strong currency versus a weak currency.
- Sell a weak currency versus a strong currency.
The Currency Power for 8 Major Currencies 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 “currency-power-indicator-2.ex4” indicator for MT4
Key Features
- Real-Time Currency Strength Analysis: Displays the strength of the eight major currencies instantly.
- Mini Dashboard Interface: Appears in the lower-left corner of the MT4 chart for easy access.
- Compatible with All Timeframes: Suitable for scalping, day trading, and swing trading strategies.
- Non-Repainting Signals: Provides reliable signals that do not change after being formed.
- Easy Integration: Can be used alongside your preferred trading systems or strategies.
Indicator Example Chart (EUR/USD H1)
Below is an example chart showing the Currency Power Indicator applied to the EUR/USD pair on the H1 timeframe.
How To Trade Using This Indicator
To trade effectively with the Currency Power Indicator:
- Identify Strong vs Weak Currencies: Use the dashboard to spot the strongest and weakest currencies.
- Confirm with Additional Indicators: Utilize tools like moving averages or RSI to validate the trend direction.
- Entry Points: Enter a trade when both the currency strength and additional indicators align.
- Stop Loss: For buy trades, place the stop loss below the recent swing low; for sell trades, place it above the recent swing high.
- Take Profit: Set the take profit at the next significant support or resistance level, or use a fixed risk/reward ratio, such as 1.5:1.
Download Now
Download the “currency-power-indicator-2.ex4” indicator for Metatrader 4
Forex Strategy: Currency Power (8-Major) + Super Arrow
What This Strategy Is About
This system merges two intuitive MT4 indicators. The Currency Power for 8 Major Currencies displays the ranked strength of the eight core currencies in a neat dashboard on your chart, helping you quickly spot the strongest versus the weakest in real time.
The Super Arrow Indicator draws clear buy and sell arrows directly on the price chart, using multiple tools like moving averages, RSI, and Bollinger Bands.
Together they form a powerful strategy: you only trade when a currency pair shows a strong-versus-weak setup and the Super Arrow confirms direction with a precise signal.
Buy Rules
- Use the Currency Power dashboard to identify the strongest currency versus the weakest.
- On your chart (e.g., EUR/USD), wait for the Super Arrow to show a green buy arrow.
- Enter a long position at candle close once both strength and arrow align.
- Set stop loss just below the recent swing low.
- Exit when the Super Arrow flips to red, or reach your target using a fixed reward-to-risk ratio (e.g., 1.5:1).
Sell Rules
- Spot a weak currency versus a strong one using the power dashboard.
- Wait for a red sell arrow from the Super Arrow indicator.
- Enter short at the close of the signal candle.
- Place a stop loss above the most recent swing high.
- Close the trade upon the next buy arrow or when your profit target is met.
Trader Case Studies
Below are three examples featuring traders from different parts of the world applying this approach in real market conditions.
Emily K – United Kingdom
Emily K, a disciplined swing trader based in London, used this strategy on EUR/CHF and USD/JPY over four weeks. She only entered when both the power indicator and Super Arrow confirmed. Her methodical entries delivered a solid +334 pips in total.
Mateo G – Argentina
Mateo G, a day trader from Buenos Aires, applied the system on AUD/USD and GBP/AUD over ten trading days. He focused on high-volatility London and New York windows, turning precise entry signals into +278 pips in profit.
Linh T – Vietnam
Linh T, a short-term trader in Hanoi, used 15-minute charts on USD/CAD and EUR/GBP with this method. By filtering entries through the dashboard and then acting on arrows, she netted +220 pips in just two weeks.
Disclaimer: These case studies are for educational purposes only. Actual trading performance depends on proper risk management, discipline, and prevailing market conditions.
Advantages
- Combines objective currency strength ranking with pinpoint entry signals for better trade quality.
- Dashboard is easy to interpret, and arrows simplify entry decisions.
- Works across all styles—scalping, day trading, and swing trading.
- Ideal for traders seeking a structured setup with visual clarity.
Drawbacks
- Requires patience: trades must wait for both strength alignment and arrow confirmation.
- May miss early move bursts if dashboard updates lag slightly.
- Performance can suffer in choppy or low-volatility ranges.
Conclusion and Tips
This strategy merges the power of the Currency Power for 8 Major Currencies dashboard with the precision of the Super Arrow Indicator.
By combining strength ranking with signal arrows, you trade only high-confidence setups.
To get the most out of it, trade during active sessions like London and New York for stronger trends.
Indicator Specifications
| Platform | MetaTrader 4 (MT4) |
|---|---|
| Currency Pairs | USD, EUR, JPY, GBP, AUD, CAD, NZD, CHF |
| Timeframes | All timeframes (M1 to D1) |
| Indicator Type | Currency Strength Meter |
| Inputs | Customizable colors, update interval, and display settings |
| Repainting | No |
FAQ
1. How does the Currency Power Indicator determine currency strength?
The indicator calculates currency strength by analyzing multiple currency pairs simultaneously, providing a clear view of which currencies are strong and which are weak.
2. Can I use this indicator for scalping?
Yes, the Currency Power Indicator is effective for scalping strategies, especially on lower timeframes like M1 and M5, by identifying quick, high-probability trades.
3. Does the indicator work on all currency pairs?
While it is designed for the eight major currencies, the indicator can be applied to any currency pair to assess relative strength.
4. How can I combine this indicator with other trading tools?
Combine the Currency Power Indicator with trend-following tools like moving averages or oscillators such as RSI to filter out false signals and improve trade accuracy.
5. Is the Currency Power Indicator suitable for beginners?
Yes, the indicator provides a simple visual representation of currency strength, making it user-friendly for traders new to forex trading.
Final Words
The Currency Power Indicator for 8 Major Currencies is a valuable tool for traders seeking to identify high-probability trading pairs by assessing currency strength in real-time.
By combining this indicator with other technical analysis tools and proper risk management strategies, traders can enhance their decision-making process and increase the likelihood of successful trades.
