Currency Power Meter
Surprisingly, the currency strength can be measured and then use this parameter to build your trading in such a way that the number of profitable trades will be significantly higher. Many market participants believe that the main indicator of success is a trader's ability to predict the trend direction. It is really so, but what determines this change of movement?
The trend depends on the outcome of the struggle between currencies. The market tends to move towards the stronger currency and the Currency Power Meter can measure this parameter.
There are other tools that measure the volatility. They carry out this process in traditional ways, while the strength of currencies is a specific value that requires new methods. The Currency Power Meter indicator began its history of popularity in 2010, when market participants discovered it. Already in 2011, it gained fame and became necessary for those traders who work with several currency pairs at the same time.
How to use the Indicator
The developers have made sure that the tool works reliably and does not fail. Indeed, even after the trading terminal update it continues to function stably, allowing traders to concentrate on their activities and not to be distracted by technical moments related to the indicator's work.
Currency Power Meter is not a standard tool integrated into the MetaTrader 4 trading terminal, so you need to download and install the application to work with it. Once the file obtained from the Internet is on your PC, it should be moved to the folder with all the indicators. After that, the program should be restarted.
To add your assistant to the chart, find it in the "Insert" tab among all indicators of the group with the appropriate name. Click on the name, and then the information panel will appear on your screen, where all indicators will be displayed.
Pros and cons of the Currency Power Meter indicator
The advantage of the assistant is that it allows you to better navigate the market and easily determine the current trend. In addition, the indicator indicators help to make decisions about closing or opening positions. The Currency Power Meter is not intended to find an average value of any value, so a trader always sees the real situation and evaluates his/her possibilities on its basis.
Sometimes, however, the indicator distorts the data. It may happen when there are currencies, which have different regional binding (for example, New Zeeland dollar). Also, the problem may arise when the currency has different volatility. It is necessary to pay attention to the time, because currencies with large trading volumes trade differently depending on the session.