The Power of EUR indicator for Metatrader 4 measures the relative strength of the Euro major currency in real-time.
When the relative strength of the EUR currency is strong, trade it against a weak currency.
For instance, when the Euro is strong and the U.S. Dollar is weak, buy the currency pair (EUR/USD).
Vice versa, when the relative strength of the EUR currency is weak, trade it against a strong currency.
For instance, when the Euro is weak and the U.S. Dollar is strong, sell the currency pair (EUR/USD).
- The Euro is considered strong when its relative strength is trading above the 0.00 level.
- The Euro is considered weak when its relative strength is trading below the 0.00 level.
Key Points
- Power of EUR above the 0.00 level is considered strong. Trade against a weak currency.
- Power of EUR below the 0.00 level is considered weak. Trade against a strong currency.
- Confirm the buy or sell trade entry with other analysis tools.
- Works for any Forex pair with the Euro currency included.
Free Download
Download the “Power_of_EUR.ex4” Metatrader 4 indicator
Indicator Chart (EUR/USD D1)
The EUR/USD Daily chart below displays the Power of EUR Metatrader 4 forex indicator in action.
Basic Trading Signals
Signals from the Power of EUR Forex MT4 indicator are easy to interpret and goes as follows:
Buy Signal: Open a buy trade as soon as the Power of EUR relative strength crosses the 0.00 level upwards and the counter currency is weak.
Place a stop loss 5 pips below support or apply your own favorite stop loss strategy for buy signals.
Close the buy trade for a reward/risk ratio of 2.5 or better, or apply your own favorite take profit strategy.
Sell Signal: Open a sell trade as soon as the Power of EUR relative strength crosses the 0.00 level downwards and the counter currency is strong.
Place a stop loss 5 pips above resistance or apply your own favorite stop loss strategy for sell signals.
Close the sell trade for a reward/risk ratio of 2.5 or better, or apply your own favorite take profit strategy.
Power of EUR + Zero Lag MACD Forex Scalping Strategy
This scalping strategy uses the Power of EUR Indicator for MT4 and the Zero Lag MACD Indicator for MT4.
The first indicator tracks the relative strength of the euro:
You open a buy trade when the Power of EUR crosses above the 0.00 level (indicating EUR strength vs the counter currency) and open a sell when it crosses below 0.00 (indicating EUR weakness).
The second indicator shows momentum: when its histogram is above zero, it signals bullish momentum, when below zero, it signals bearish momentum.
This dual-filter setup is ideal for fast scalps on M5 or M15 time frames, using pairs where the euro is paired with a weaker or stronger currency.
Buy Entry Rules
- The Power of EUR indicator crosses above the 0.00 level, showing euro strength versus the counter currency.
- The Zero Lag MACD histogram turns above zero, confirming bullish momentum.
- Check that the counter-currency in the pair is relatively weak (so the trade has a directional bias).
- For example, in EURAUD, when AUD shows weakness.
- Enter a buy trade when both conditions occur on the same or consecutive candles on the M5 or M15 chart.
- Set stop loss about 10-15 pips below the recent swing low (on M5) or 15-25 pips (on M15), depending on volatility.
- Set take profit target of 20-40 pips (M5) or 40-60 pips (M15)
- Or exit when either the Power of EUR crosses back below 0.00 or the Zero Lag MACD histogram drops below zero.
Sell Entry Rules
- The Power of EUR indicator crosses below the 0.00 level, indicating euro weakness versus the counter currency.
- The Zero Lag MACD histogram falls below zero, confirming bearish momentum.
- Ensure the counter-currency is relatively strong (so the pair has momentum in your direction), for example, EURCAD when CAD strength is evident.
- Enter a sell trade once both signals align on the M5 or M15 time frame.
- Set stop loss approximately 10-15 pips above the recent swing high (M5) or 15-25 pips (M15) per volatility.
- Set take profit target of 20-40 pips (M5) or 40-60 pips (M15)
- Or exit when the Power of EUR crosses above 0.00 or the MACD histogram turns above zero.
Advantages
- Combines currency-strength reading (Power of EUR) with momentum confirmation (Zero Lag MACD) for higher probability entries.
- Scalping setup promises quick trades and reduced overnight exposure; it fits active day traders.
- Clear visual signals: crossing zero for the strength meter and histogram above/below zero for MACD make it easy to scan charts.
- Suitable for major EUR pairs with high liquidity (e.g., EURJPY, EURAUD, EURCAD), which aids execution and tighter spreads.
Drawbacks
- The strategy requires the counter-currency to show clear strength or weakness. If both currencies move similarly, signals lose reliability.
- The Zero Lag MACD reduces lag but may still react late during fast market moves, occasionally causing late entries or exits.
Case Study 1: EURJPY M5 Setup
During the London session, the Power of EUR indicator crossed above 0.00, signalling euro strength.
At the same time, the EURJPY chart on M5 showed the Zero Lag MACD histogram crossing above zero.
The trader entered a buy at 157.20 with a stop loss at 157.05 (15 pip stop).
Price moved swiftly to 157.60, giving a 40-pip profit before the MACD histogram dropped back below zero and triggered the exit.
Case Study 2: EURCAD M15 Setup
In the New York session, the Power of EUR dropped below 0.00, indicating euro weakness, while CAD was showing strength via the strength meter on other pairs.
On EURCAD M15, the Zero Lag MACD histogram fell below zero.
The trader sold at 1.4200 with a stop loss at 1.4218 (18 pips).
Price declined to 1.4145 within the next 30 minutes, securing a 55-pip gain before the strength indicator crossed back up and the MACD histogram approached zero.
Strategy Tips
- Always confirm that the EUR’s strength or weakness on the Power of EUR indicator matches the general market sentiment.
- When possible, use additional confirmation, such as a simple moving average or a trendline, to verify trend direction before entering a scalp trade.
- Focus on currency pairs with strong volatility and tight spreads like EURJPY, EURUSD, and EURAUD. These pairs tend to deliver faster movements and cleaner setups.
- Monitor the first 2–3 candles after entry. If the price doesn’t move at least halfway to your target, close early to reduce the risk of a reversal.
- Use trailing stops once the trade moves in your favor by 20–25 pips. This locks in profits while allowing further gains if momentum continues.
- Avoid trading during the last hours of the New York session when liquidity drops and signals become less reliable.
- Check upcoming economic events such as ECB speeches or high-impact EUR data releases; avoid entering new trades shortly before them..
Download Now
Download the “Power_of_EUR.ex4” MT4 indicator
Adjustable Parameters & Settings
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
