Currency strength indicators are a useful tool for understanding the absolute strength of a currency when trying to predict future trends. Below are the details of MetaTrader’s currency strength line indicator.
The MT4 and MT5 currency strength line indicators are powerful tools that can assess currency strength and generate trading signals on the platform.
Currency strength index
To understand what MetaTrader’s currency strength line indicator is, you need to know that the value of a currency is always represented in relation to another currency or commodity. This is called the exchange rate.
For example, look at the EUR / USD currency pair. Represents the value of the euro against the US dollar, 1.0638. This means that you can buy $ 1.0638 for 1 euro.
The currency strength indicator (or meter) is a tool that expresses the absolute strength of a currency and allows you to compare it with the strength of other currencies.
There are no exact rules for calculating this force, but there are several ways to help fit.
Almost every method involves some sort of analysis of every pair in which the currency exists.
This allows you to calculate strength without relying on just one other currency. In other words, it reflects the overall strength of the currency.
This concept can be confusing at first, but in some cases it’s easy.
Currency Strength Index-Other-August 20, 2021
https://www.mql5.com/en/blogs/post/745454?utm_campaign=RSS&utm_medium=display&utm_source=MQL5+EN+Blog Currency Strength Index-Other-August 20, 2021