As a trader, it’s crucial to be able to assess the strength of various currencies in the market accurately. The Advanced Currency Strength Indicator, created by Bernhard Schweigert, is a tool that can aid you in this process. The platform is sold on the MQL5 platform and is owned by Schweigert’s website, currencystrength28.com. In this article, we will discuss how the Advanced Currency Strength Indicator operates and how it can be incorporated into your trading strategy. The platform provides real-time data on the strength of different currencies, allowing you to make more informed decisions. Whether you’re a beginner or an experienced trader, the Advanced Currency Strength Indicator could help you enhance your trading strategy.
What is the Advanced Currency Strength Indicator?
The Advanced Currency Strength Indicator is a powerful technical analysis tool that measures the strength and weakness of all 28 forex currency pairs. It operates on any time frame and can be used for scalping, day trading, and swing trading. The tool’s innovative design incorporates consumer momentum and competitive Fibonacci Market Levels, making it highly accurate and effective. Its use of advanced technical analysis techniques enables traders to identify entry points in new trends, potentially improving profitability in the forex market.
The indicator is easy to use and can be loaded onto the MetaTrader 4 (MT4) platform with minimal effort. Once loaded, the tool will appear in a separate trading window beneath the main activity chart, providing a clear visual representation of the relative strength of each currency. The tool operates on any time frame and can be used for scalping, day trading, and swing trading purposes, making it a versatile addition to any trader’s toolbox.
Advanced Currency Strength Indicator Strategy
The Advanced Currency Strength Indicator is an effective tool for traders looking to trade short-term trading ranges of 10-20 pips. It is particularly useful for identifying short-term reversals in the market. When using the Advanced Currency Strength Indicator, a strategy that has been found to be effective is to trade the signals given in the indicator window when two currency pairs move in opposite directions. This strategy involves buying the strong currency against the weak one and selling the weak currency against the strong currency. While this strategy can be used on a 1-minute chart, it is important to exercise caution when trading at such short time frames. Overall, the Advanced Currency Strength Indicator, when used with this additional filter, can be an effective tool for short-term trading strategies.
Buy Signal
- Wait for the Advanced Currency Strength Indicator to identify the strongest and weakest currencies in the market.
- Traders may buy the strong currency against the weak.
- Set a stop loss for your position a few pips below the entry candle or according to your money management strategy.
- Traders may close their trades at a preset profit target or according to their take profit strategy.
Sell Signal
- Wait for the Advanced Currency Strength Indicator to identify the strongest and weakest currencies in the market.
- Traders may sell the weak currency against the strong.
- Set a stop loss for your position a few pips above the entry candle or according to your money management strategy.
- Traders may close their trades at a preset profit target or according to their take profit strategy.
Advanced Currency Strength Indicator Pros & Cons
Pros
- The indicator provides a quick and easy way to identify the strongest and weakest currencies in the market, saving traders time and effort in manual analysis.
- The addition of Consumer Momentum and competitive Fibonacci Market Levels make it a modern and innovative tool for forex trading.
Cons
- The indicator does not take into account fundamental analysis, which can be an important factor in forex trading.
- Traders must continually monitor the market and the indicator to capitalize on potential trading opportunities, which can be time-consuming.
- It doesn’t provide exit profit points and stop loss points in the market
Conclusion
Overall, the Advanced Currency Strength Indicator is a valuable tool for traders looking to stay ahead of the forex market and make informed trading decisions. Its ability to analyze all 28 currency pairs and provide insights into the strengths and weaknesses of different currencies makes it an asset for certain traders. It is important to use the indicator in conjunction with other technical analysis tools and practice good risk management techniques to ensure success.
Self-confessed Forex Geek spending my days researching and testing everything forex related. I have many years of experience in the forex industry having reviewed thousands of forex robots, brokers, strategies, courses and more. I share my knowledge with you for free to help you learn more about the crazy world of forex trading! Read more about me.
