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How to Add Moving Average to RSI in Tradingview?

April 15, 2021 by Fxigor

TradingView is an extraordinary website to solve all your problems of creating charts, coding, ass moving average on RSI with extreme ease of functionality and simple usage. This is a place where you do not have to know technical skills to do technical work.

In this article today, we would enlighten you on how moving average can be added to RSI on TradingView without any hassle.

Add TradingView RSI on the chart.

Certain steps must be followed to run through the process of adding RSI quickly. These steps have been listed below:

Go to Charts
Click on add indicators
Add on RSI that is normal
Further, add up the moving average as normal
Click the right button on Moving average on the chart
Come down to the option of Move to
Choose the option of Existing Pane below

After following this procedure, your work will be done!

You can now go ahead to alter the settings of the RSI and the Moving Average if you did not do it earlier. The ordinary people generally prefer is 14 while using the Exponential Moving Averages. If you like, you also have the option of adding more indicators to the RSI.

How to Add Moving Average to the RSI Indicator in TradingView

To add Moving Average to your RSI indicator in TradingView, you need to do the following steps:

Go to Charts
Click on add indicators
Add on RSI on the chart
Add Moving average on the chart as usual.
Click the right button on Moving average on the chart
Choose the option “Move to.”
Select option “Existing Pane below.”

See video:

How to Add Moving Average to the RSI Indicator in TradingView video

Things To Know About RSI in TradingView

Relative Strength Index, also referred to as RSI, being an oscillator indicator, helps measure the change and speed of directional movements in the price. It helps you understand the weaknesses and strengths in the present and give you a fair look at the past. The way to ascertain it is by using the closing prices of your duration and the timeframe that is being considered. It helps a person ascertain the prices and confirming the option. This indicator’s only drawback is that it might be a lagging indicator since the estimations are made based on the closing prices.

Indicators To Be Used in TradingView

Just like RSI, there are several others which you can use to ascertain different things. Some of these indicators are paid, while the others are free to use. For starting on your journey, it would be best to use free indicators and become well-versed with the system first. You can eventually work with a Pro+ account or even a premium account at best if the need be. While using basic tools like RSI, you can always add other assistance tools to make your functioning easier and more appropriate.

There is also an option of using Indicators on other indicators to ameliorate the functioning. For example, it is possible to use another indicator over RSI, such as the Divergence Indicator. Using multiple indicators would aid you in reaching more as well as better confirmations. Another example of two tools that go hand in hand is 13/62 crossover and Exponential Moving Average. There, in fact, can be found indicators that give you an alert of buy and sell while you are using TradingView.

Add 50-Day Moving Average in TradingView.

Various Moving Averages can be used, among which 50-day is one. It can be best used along with TNT Strategy. For working on the Bollinger Bands, the best way is to add them to the main chart, followed by differentiating the basis of these. To make the process of adding 50 Day Moving Average to the Tradingview charts, here are some simple steps that you must follow:

Go to the Daily Chart section.
Now, look for the option of add indicators
Feed Moving Average in the search option
Now press on the Moving Average
You must now click the right button on Moving Average in the charts
Go down to the option of settings at the bottom
Alter the length to 50 under the section of Inputs
Press okay

And here you go! By following this easy procedure, you would be able to feed the 50-day moving average option. There is also an option to get the 50-day moving average on the 4 hours and 1-hour categories. The simple way to go about it is to break down the candles to the per day number and multiply it by 50. Once you go through the process, you will realize how easy it is.

The most found usage of this indicator is to take benefit of the early entry. While in a new paradigm, you must begin the trade on 1M or max a 5M chart. Let us guide you through some mathematical calculations now to simplify the process for you further.

The moving average of 4-hour and 50-day: Considering a chart of 4 hours, 6 candles can be equated to one day. Then, to take the 50-day moving average on a 4-hour chart, you must take 6 and have it multiplied by 50.

50 X 6 = 300

Therefore, to get a 50 day moving average for a 4-hour chart, you must enter the length as 300

The moving average of 1-hour and 50-day: If you estimate, on a 1-hour chart, 24 candles would be equated to one day. Therefore, to get the 50-day moving average of a 1-hour chart, all you have to do is multiply 24 with 50. The calculation would look like this:

50 X 24 = 1200

Therefore, for a 1-hour chart, you must enter the length as 1200.

There also rests an option to skip the mathematical calculations and get the moving averages according to any time frame you choose by signing up for the free membership, which would also provide you with other free indicators.

RSI and moving average crossover in TradingView

Go to Charts
Click on add indicators
Add on RSI on the chart
Add Moving average on the chart as usual—set Period for example 50.
Add another Moving average on the chart as usual—set Period, for example, 100.
Click the right button on Moving average 50 on the chart and select “Move to” option “Existing Pane below. ”
Click the right button on Moving average 1000 on the chart and select “Move to” option “Existing Pane below. “

RSI is a very easy-to-use platform where you can work with various indicators to ease your work. However, one strategy that works at all times would be the crossover strategy. Even though using RSI indicators is not so difficult, people might stick to using easier tools at the beginning for which this strategy can work the best.

The standard setting of RSI is set at 14; however, as time passes by and you get acquainted with the Daily charts, and might want to experiment with new things that work the best for you. You might also research a little about the new techniques to find the best one that suits your needs.

Trend Trading in RSI: Like all the moving average strategies, this is yet another strategy. How it works is by using a pair to trend down and up with. The basic logic is that there is a requirement to have higher highs and lows against a downtrend, where the requirement is for lower lows and highs for an uptrend. It is possible to have taken only in the direction of the ongoing trend. Therefore, there are sales when there is a low trend and buy when there is an uptrend.

To understand this better, we can use an example of a 1-hour time frame with the RSI fixated at 21 and a moving average of 13. We would further make use of the Bollinger Bands set at 50. When it goes down to the middle line, you can provide a movement of the stop loss to profit or even to a break-even point if nothing else. Moving on, when the trend moves to the upper line or the lower line, you have two options. Either you can take the stop loss further ahead into profits or decide to close a half lot or even close out everything. Another option is to move the stop loss after another 10-20 pips into profit if you like. There are a lot of trading techniques that can be followed. Mostly, all the traders follow a similar entry technique but meet with very different ends on their varied exit techniques.

We will now list out certain entry and exit points for you to refer to:

Entry

At an RSI over 60, sell, and with an RSI below 40, buy
As and when you see the RSI getting at a range over 60 as well as pulling over the moving average, you must make an entry on the following candle close in the right direction
It would help if you fixated the stop loss to the final preceding high or low, which in the current case might be 15 pips. The same can be set at 30 pips if you are considering a 1-hour chart.

Exit

When you find the trend getting to Basis, 50 moving average, you must alter the stop loss to gather profits.
When the trend reaches low or high, you can alter SL to look for more profit, partial or complete close depending on your choice.

There isn’t any right way of trading. However, you must ensure that you are taking enough demos as well as backtesting. You can try out the different indicators at your disposal to observe the trends and get a high hit.

There are different indicators and filters available on TradingView. However, only a few of them can be availed for free, followed by which you must have to enroll for packages and upgrades.

Another thing related to setting a basic RSI might trouble you, and therefore, we would finally lay down the steps to set up an RSI easily on TradingView.

Firstly you must right click on the option of indicators
Locate RSI and right-click on it to add it to your chart
Press the icon which denotes ‘settings.’
Alter it to whatever you like by removing the default 14

Conclusion

RSI is a straightforward indicator to use and understand. You can also use this indicator very flexibly with many other strategies and tools without much hassle. If you are looking for a quick-fire, you must set up the RSI either higher than 80 or otherwise lower than 20. If you post that you witness divergence on the RSI in consideration of price actions, it will be a sure win. Divergence generally works really well with RSI.

The best part is that you can access this strategy without paying anything by simply signing up for the account of Free TradingView. You can get extraordinary deals here if you upgrade in the future to a paid plan or even if you decide to work with a similar free plan.

There is an excellent experience you can undergo by using the free plans offered by TradingView. It, in fact, will be a very safe choice to make in the beginning when you are not very sure of the strategies you want to make use of and master. The free sign-up can help you experience the best without losing out on anything significant in the beginning.

The best way to upgrade the account is by reinvesting the money you make via trading for free. After you have earned some money, it may be a good choice to invest in standing a higher chance of making money by upgrading to a premium plan.

TradingView can offer exemplary deals after you have signed up for free for 30 days and also around Black Friday. Therefore, you must wait patiently for these deals to arrive and make money out of free sign-ups till then to have the best experience.

Can I Get Someone to Trade Forex for Me?

by Fxigor

Any new Forex trader or trader of any financial instrument is often worried about several things. They have several concerns, and their main goal is to learn as much as possible in the shortest time period and not lose money. New traders often do one of the two things, they either learn about the art of trading from ground zero, or they hire someone who can trade on their behalf or, at the least, provide them with their expert opinion.

Now the question is, is the second option viable for everyone? Can someone else trade Forex on your behalf?

What is forex account management?
Forex account management represents a trading process where the money manager (trader) manages the trading on the clients’ behalf. Usually, money managers are granted only access to the account while the investors have full control over their account. The account managers usually take around 20% of the profits as a commission for their work.

Yes, most certainly! You can hire a professional to trade Forex in your place. The best part is, there are several brilliant Forex traders in the market. They can easily help you out with your needs. This allows you to capitalize on expert knowledge that you do not possess. Most newbie Forex traders prefer this technique because it allows them to avert risk to a great level. This also reduces their chances of going into debt which is a possibility in every trading market. Another great advantage of hiring an expert is that you can follow their actions and learn while managing your account.

Pay someone to trade forex for me

Can I Get Someone to Trade Forex for Me?

Yes, you can pay other traders to trade forex for you in the following ways:

Invest in Forex-Managed Account PAMM account where successful traders trade instead of you.
Invest in a mirror trading platform where you can follow traders from several trading experts.
Invest a large amount of money in a hedge fund or trading prop company where professionals trade for you.

PAMM account

What is PAMM in forex? The PAMM or Percentage Allocation Management Module is a trading platform that simultaneously administrates an unlimited quantity of managed accounts where investors and traders use the same broker.

The best PAMM account forex brokers are:

1) Alpari PAMM Account Service
2) Instaforex PAMM Account service
3) Dukascopy PAMM Account Service
4) Hotforex PAMM account

Getting a Forex-Managed Account

A Forex managed account is one that professional brokers or Forex traders manage. This account will be in your name but managed by someone else. You can easily find a reliable and professional broker online. By hiring a money manager or an expert trader, you can save a lot of time that you would have otherwise invested in studying the market or doing the research. This is a great way of making extra money for those who treat trading as their side hustle.

Once you have hired a professional trader, most of your work is done. They will most likely ask you basic questions like how much money you are willing to invest and the degrees of risk you are willing to take. Once this is sorted, your expert will manage your account by looking out for trading opportunities. Your hired expert will apply her/his knowledge and make transactions under your name.

If you are still confused about how it would be like to have a managed Forex account, you can equate it with the investment equities account. Managers also handle these accounts.

Before you hire a professional Forex trader, you and the money manager (trader in this case) come into a signed contract. This document or signed agreement has all the terms and conditions of this professional relationship. This contract declares that someone else will be trading with your money and under your name on your behalf. Once this contract is signed, it is the responsibility of the Forex expert to take it forward. If all goes well, you will get the desired profits even without working technical knowledge of this field.

This is a great way of creating a new source of income without putting in too much effort. You only need to make sure that you are hiring a trusted and reliable expert. We all know that there is nothing in this world, especially in trading, that is absolutely positive or negative. Similarly, hiring a professional to trade in place also has its share of advantages and disadvantages. Let’s discuss them.

Mirror trading or Copy Paste Trading

Copy and paste trading represents the use of mirror trading technology to copy the real-time forex trades (forex signals) of other live traders. Forex Trading Copy and Paste methods involve practice when some trader creates a trade at the same time in your trading platform trade will be executed. Using a mirror trading platform, basically, you are copying the trades of more experienced traders.

Hotforex Copy is a social network platform where traders can copy signals. Visit HF Copy

Advantages of Hiring an Expert Forex Trader

This is how a professional trader benefits you:

1. Less research is required

The Forex market sees the maximum number of transactions in a day. It is highly volatile and operates 24 hours a day for five days a week. In addition to that, it requires extensive research work. The only way you can make some profit is through thorough research work, and this requires a lot of time and effort. By hiring an expert, you can save yourself from all this trouble and invest your time in other productive activities. In addition to this, this research work involves reading a lot of charts. If you are not comfortable with that, your research work will ultimately lead you nowhere. Thus, it is better to hire an expert in this case.

2. No time spent on studying

The only way you can make a profit by trading Forex is by educating yourself continuously. The reason behind this that currencies are directly linked to their respective economies. While stocks are affected by a single entity’s performance, currencies are affected by the entire country’s performance. Traders need to conduct a mix of technical and fundamental analysis. You need to constantly look at the news and read statements and reports released by the countries’ financial institutions. Even a slight change in the monetary policy can change the whole game. Professional Forex traders have access to a larger database, and they are aware of which news or report to follow. This will not only save your time but also keep you from chasing unproductive events.

Disadvantages of Hiring an Expert Forex Trader

This is what you should be cautious about while hiring a professional trader:

1. Additional Cost

If you are hiring someone, you need to pay them for their services! This is one of the biggest disadvantages of getting a professional Forex trader. You often pay their commission and, depending on their level of expertise; it can be pretty high.

2. Not Everyone is Reliable

Asking someone to trade on your behalf would mean that you are extending a part of your identity to them and give them access to your trading account and money. Doing this is only possible when the other person is reliable. While there are many reliable and good Forex traders, there are several con artists as well. Therefore, you need to be certain of someone’s credibility before handing them your investment and account.

We have seen what it would be like to hire someone else to trade on your behalf. Based on what you prefer, you can choose a professional trader. There is, however, the third option as well. You can trade yourself as well! This, too, has some advantages and disadvantages. Let’s discuss them now.

Pros of Trading by Yourself

First of all, we would not recommend this to anyone who has no prior trading knowledge. If you do have some experience and you would like to handle your account on your own now, these are the pros of it:

1. No more commissions

By trading yourself, you can eliminate the biggest downside of hiring someone else: commission. The services of professional traders are not cheap. You are liable to pay them irrespective of whether you are making profits or losses. These commissions can take away a substantial chunk of your earnings. When you trade yourself, you don’t have to pay anyone else. Whatever you make remains yours.

2. No more trust issues

As we mentioned earlier, there are several expert traders in the market, each with a different strategy. You need to employ a trial and test method to find a trader that suits your needs and matches your trading style. This can take a while. You also have to run a background check to ensure that the trader you have selected has all the certifications. You must make sure that someone reliable is taking care of your investment. When you are trading yourself, all these additional steps can be avoided, and you can begin trading as soon as you want.

Cons of Trading by Yourself

These are some of the challenges you might face while trading by yourself:

1. You need to upgrade your technical skills

Forex trading requires a lot of research work. If you wish to further your earnings, you have to read several charts and reports. All these are fairly technical in nature. The research work is not only time-consuming but demands a certain degree of technical knowledge as well. If you do not have it and plan to start from scratch, it could be a messy and long process.

2. You have to learn a lot

Forex traders constantly add to their existing knowledge. At the same time, expert traders are well-aware of the basics; they only need to process any new information. Such is not the case with newbies. You can build your knowledge base from level zero, which could take months or perhaps years. Without this knowledge base, you cannot hope to grow your bank balance via Forex trading.

Conclusion

The simple answer to the question ‘can I ask or hire someone else to trade Forex for me?’ is ‘yes.’ By hiring an expert Forex trader, you can trade without any worry or stress. There will be someone else who will do all the market research or look at data charts instead of you.

While hiring a professional is a great idea, make sure that you are with the right trader. Never give access to your money and account to anyone who is not reliable.

How much is $1 million in Indian rupees?

April 14, 2021 by Fxigor

$1 million is around 75 million Indian rupees. Please check the real time currency exchange calculator above.

As we can see on USDINR live chart, USDINR price in 2021. is rising:

The word ‘rupee’ has been derived from the Sanskrit word rupyakam, meaning a silver coin. The first rupiya, issued by Sher Shah Suri in 1540-45. Today, the Reserve Bank of India issues currency under the RBI Act 1934, which follows rupees’ history from the British era to now.

There are 5, 10, 20, 50, 100, 500, and 1,000 rupees with regard to banknotes.

The USD/INR has been trading on a long-term bullish trend since the chart history shows. USDINR had multi decades bullish trend from around 10 in the late 1980s to 77 back in April 2020.

How much is one lakh in US dollars?
1 lakh is equal 100 000 rupees. To calculate lakh in us dollars you need to divide 100000 and 1 rupees price in US dollars.

For example if USD=75 rupees then 1 lakh=100 000/75=1565.66 USD = $1333

How much are 1 billion dollars in rupees?
1 billion dollars are around 75 billion rupees. 1 billion is $1,000,000,000 and if it is multiplied by 75 it is 75,000,000,000.For exact number see the calculator below:

Below is the calculation of 5 billion dollars in rupees:

Below is the calculation of 50 billion dollars in rupees:

What is a Currency Meter Indicator?

by Fxigor

Unlike other financial markets, the forex market is different as it is traded in pairs. It is mandatory to trade in pairs when it comes to forex; it also simultaneously provides you with exposure in two currencies. But do you know how to choose a forex pair?

The currency meter indicator or currency strength Indicator shows on the chart a strength between major currencies and how one of them would perform against the other. For example, Euro vs. USD or GBP vs. USD. When it increases in rate, you may want to think about whether it’s because the Euro condition is good or if the USD condition is poor.

Download Currency Meter Indicator

This article would discuss various things associated with the overall currency strength indicator like forex strong and weak indicator, free currency strength meter indicator mt4, how to trade currency strength meter, currency strength meter work, and much more!

A Forex indicator shows which currencies appear powerful and which will be vulnerable at any particular time, as well as the motion of those currencies in a chart. You would see another resource at your fingertips if you use an efficient currency strength meter, allowing you to become the next successful trader.

How Will You Define a True Currency Strength Meter?

The currency strength meter seems to be a visual indicator that shows which currency is high and vulnerable right away. Currency strength metrics combine the exchange rates of various currency pairs to provide an overall measure of each currency’s value. Basic meters do not use any relative weight, whereas more sophisticated meters would use their version. Aim of providing trading signals, they can incorporate other indications also with currencies strength calculation.

To evaluate the intensity of the USD, as, e.g., a currency strength meter will determine the intensity of all pairs comprising the US Dollar that is – USDJPY, GBPUSD, AUDUSD, EURUSD, etc., and afterward add the numbers to get the total result for the USD.

The narrow USD index measure, which also uses a broader range of currencies, is often a lesser-known but perhaps more detailed metric. Both operate similarly. They determine the dollar’s strength by combining international exchange rates into some single amount and then assigning a relative weight to the currencies involved. The wide index’s weighting is based on trade data and is called a trade weighting. That’s the percentage of goods imports in total bilateral trade annually from the United States.

Struggles Involved with the Currency Strength Meter

Sadly, there’s a slew of problems with currency strength measurements, especially if they are improperly encoded. Irrespective of many of its characteristics, a currency’s strength meter is useless if it does not have reliable currency strength values. Investors who use obsolete currency strength meters can encounter the following issues:

MetaTrader 4 or MT4 becomes unresponsive.
The computer slows down.
Stuttering
Whipsaw indications
Leakage of memory
The CPU is still running at full speed.

This also generates information that differs from its original definition of what currency strength becomes. Smoothing filtering, such as moving averages, is used by some, whereas others like MACD and RSI use other filters. By shading filtering on the pinnacle of presenting currency strength, dealers risk receiving incorrect trading signals, resulting in bad trade execution and a close loss.

Rather, currency correlation has been the most accurate way to assess currency strength. An accurately designed Forex correlation matrix that uses the new technology is unlikely to trigger any of these problems while providing many of the same advantages as a currency strength meter.

The Real Currency Strength Meter – The Forex Correlation Matrix

Forex intensity meters have developed over time into currency correlation matrices, providing more nuanced and precise statistics. Forex correlation, like many correlations, indicates that two currency pairs are related.

Correlation is just the statistical calculation of the partnership between various monetary assets – the variables are currency pairs). The correlation coefficient can be anywhere from -1 and +1. The positive correlation means that a currency pair would follow the same path. When two currency pairs have a ratio of -1, they will still pass in the reverse direction. Eventually, a correlation of 0 means that perhaps the currency pair’s connection is totally arbitrary.

We see how currency pairs include a strong association once they are closely related. Whenever two objects increase at the same rate, they have quite a strong association; if they go in opposite ways, they have a negative relationship. When two objects travel in the same direction, a complete correlation happens, which would be incredibly unusual. If two pairs head about the same way, we assume they have a high correlation.

How Does Currency Similarity be Used to Determine Currency Strength?

Users may use contrasts to calculate the power of particular currencies when they are exchanged in pairs; for example, the EURUSD is – the euro combined with the USD.

When the EURGBP and GBPUSD get a negative relationship of -91, it implies both would probably move in separate directions because two long transactions or two short transactions upon those pairs will likely balance one another out.

The GBP seems to be the statement currency in the very 1st pair, which means buying trades’ expectation is that the Euro would be stronger than GBP. The GBP seems to be the base currency throughout the 2nd pair, which means buy trades expectation is that GBP would be stronger than the US Dollar. This suggests that perhaps a long trade throughout the EURGBP is one in which the GBP is expected to decline, whereas a prolonged trade as in GBPUSD is one where the GBP is intended to expand.

Since the two sets have such a strong correlation, one may conclude that the GBP, which is also the shared currency amongst them, is causing these moves, and hence the GBP seems to be the dominant currency within that case.

What Are the Benefits of Employing a Real Currency Strength Meter?

The currency correlation matrix as just a Forex strength predictor has several benefits, such as its flexibility. It is used as a short-term measure, its incentive to avoid double positioning and excessive hedging, its potential to indicate risky trades, and the likelihood that this is free.

1. Short-term Currency Strength Indicators are Very Efficient.

Professional traders often use forex strength meters for short-term measures. They’re handy as a fast indication of which currency is strengthening, but they’re kind of a glimpse of relative strength than anything; thus, they’re just important for providing fast investment decisions and even for validating other predictors.

2. Currency Strength Meters are Simplistic.

The ease with which a Forex strength meter can be understood as one of its main advantages. This is particularly attractive to novice traders as they do not really have to be specialists in the Foreign exchange market to choose which currencies are performing well or terribly. They can do so by just searching for a straightforward visual representation.

3. The Forex Strength Meter is Completely Free to Use.

If you’d like to check out such a currency strength meter, however, you cannot pay for a costly predictor; the best part is that many platforms provide a free strength meter!

MetaTrader Supreme Version is a downloadable and cost-free MT plugin available to customers. It comes with a 16-indicator kit, along with the Foreign exchange-correlation matrix, and allows you to compare and distinguish foreign exchange pairs in actual time.

Trading Central also offers a strategic analysis, a mini trading terminal, Forex integrated trade suggestions, and a global sentiment widget for free. Are you prepared for this and better opportunities?

These are some of the best free currencies strength metrics available in the Major currency strength meter!

4. Multiple Sensitivity is Avoided When Using Correlation Matrices.

High correlation assets shift in the very same way. Mostly, as a result, entering several positions of strongly correlated pairs isn’t really recommended since you are simply repeating the same transaction. When the market goes against you, you’ll be in a fragile spot. If an investor buys the EURJPY, AUDJPY, or AUDCHF, and in Foreign exchange, he or she faces dual exposure due to their high correlation.

Further analysis discovered that the above positions expose the dealer to have double access to both the JPY and AUD, which may be detrimental to the exchange if the movement is in a reverse way to the investor’s assumptions.

One can see whether currencies are linked at even a moment with just a Forex correlation matrix. It implies you can stop doing certain transactions in the first instance and avoid the double risk of a poor currency.

5. Unintended Hedging is Eliminated with Web Analyzer Forex Strength Meters.

A trader will prevent needless hedging if the connection intensity among pairs is established ahead of time. When there is a linear relationship between EUR/USD and USD/CHF, you can extrapolate that such two currencies are shifting in opposite directions for comparison purposes. As a result, if you allow long transactions on both, you will probably gain one, and in the other, you would lose.

Realizing this ahead of time tends to avoid unnecessary hedging.

6. Risky Trades Can be Identified by Currency Strength Meters.

The connection between various currencies can sometimes determine the amount of risk associated with a trading strategy. For instance, when we buy EUR/USD and GBPUSD, all of which are positively linked pairs, we can be exposed to the double risk if either of the currencies is powerful.

It is also possible that any one of the pairs shows intense motion while only ranging, alerting participants to stop trading correlated pairs in the reverse way. If a EUR/USD would be in a declining trend and thus the GBP/USD is increasing, e.g., a dealer must avoid buying the GBP/USD since it has a greater potential loss due to potential USD strength.

Forex Currency Strength Indicator’s Functionality

The correlation matrix here represents the correlations among various forex pairs:

EUR to USD	Euro to United States Dollar	EURUSD
EUR to CHF	Euro to Swiss Franc	EURCHF
GBP to USD	Great British Pound to United States Dollar	GBPUSD
GBP to JPY	Great British Pound to Japanese Yen	GBPJPY
GBP to NZD	Great British Pound to New Zealand Dollar	GBPNZD
USD to CAD	United States Dollar to Canadian Dollar	USDCAD
EUR to CAD	Euro to Canadian Dollar	EURCAD
USD to JPY	United States Dollar to Japanese Yen	USDJPY
GBP to AUD	Great British Pound to Australian Dollar	GBPAUD
GBP to CHF	Great British Pound to Swiss Franc	GBPCHF
EUR to GBP	Euro to Great British Pound	EURGBP

Pairs positively correlated are likely to migrate in the same path, whereas negatively or inversely correlated pairs continue to vary significantly. Correlation coefficients as per their strength are also classified into 4categories in the matrix described.

Green:	There is hardly any correlation.
Blue:	There is a weak connection between the two.
Orange:	Correlation is moderate.
Red:	There is a strong link.

It enables you to quickly assess multiple currencies’ strengths and weaknesses through positive scores suggesting dominance and negative results suggesting weakness. That’s what the stats represent:

Positive Green:		There is little to no connection. Positions on such signs will appear to shift individually and profitably, despite being unrelated.
Negative Green:		There is little to no relationship. Positions on such signs will appear to shift individually and profitably, despite being unrelated.
Blue with a Positive Value	Up to +30	There is a weak correlation. Positions on such symbols may appear to shift individually and profitably, despite being unrelated.
Blue with a Positive Value	up to +49	Positions on such symbols can resemble each other. Positions that are trending in the very same path can yield similar profits. It is indeed possible that positions in opposite directions will cancel one another out.
Blue with a Negative Value	Up to -30	There is a weak link. Positions on such symbols may appear to shift individually and profitably, despite being unrelated.
Blue with a Negative Value	Up to -49	Positions on such symbols can resemble each other. Positions that are in the very same path can be reversed. Positions throughout the reverse direction could also be profitable.
Orange with a Positive Value	Up to +75	The correlation is moderately positive. Positions on such signs that are on the same path would have equal profits. Positions that are in opposition to one another appear to null out each other.
Orange with a Negative Value	Up to -75	The negative correlation is moderate. On such signs, positions in the very same path appear to make the same kind of gains. Positions in a reverse way are likely to null each other out.
Red with a Positive Value	Up to +100	It indicates a strong perfect positive correlation. Positions on such signs in the same direction are sure to receive gains in the same way. Positions facing each other will cancel out.
Red with a Negative Value	Up to -100	It shows a robust negative correlation. On such symbols, positions in the very same path are quite likely to null each other out. Positions in a reverse way would gain in the same way.

The CAD seems to be the strongest one with a +91 association between the USDCAD and the EURCAD. The lowest association would be between EURGBP and GBPCHF and has -96, implying that concurrent positions in about the same path throughout this pair are quite likely to null each other. In consideration of currency strength, the British Pound is really the strongest currency, whereas the Swiss Franc is indeed the weakest.

If you can see, that’s a pretty straightforward idea that enables you to evaluate a country’s currency brute power in isolation rather than comparing it to some other currencies.

Is it Possible for Currency Correlations to Alter?

If there are correlations, it’s necessary to keep in mind that they can alter. Economic pressures on a worldwide platform are vibrant; they can often shift continuously. Correlation coefficients among two currencies may evolve so that a brief correlation can refute a long correlation forecast.

Correlation coefficients over time give a better examination of the situation among two major currencies as that is usually a more accurate and conclusive statistic.

This is why it’s essential to examine correlation on something like a daily basis and why a method such as the MT Supreme Version correlation matrix can be useful. It updates correlations in live time.

How Does One Get a Forex Strength Meter for Free?

The correlation matrix used in the MT Supreme Version plugin for MT4 and MT5 is among the best possible currencies strength meters.

The most widely used Forex trading platforms include MT4 as well as MT5. The capacity to download and then use personalized metrics in conjunction with Expert Advisors (EAs) has been one of their benefits. Although both systems have a helpful set of common indicators installed further into the client terminal, users can import customized indicators developed separately.

Since MT4 is really an open system with a large user base, indicator developments are fast. Inside the app, users can look for free and paying customized indicators.

The downloadable MT Supreme Version plugin features a currencies correlation matrix and other customized metrics and a live trading simulation for backtesting techniques. This also encourages you to add various custom markers and EAs that you can find useful.

Here’s what to download free forex currency strength meter for MetaTrader Supreme Version:

Open a virtual or practice brokerage account.
Get MT 4 or MT 5 and download it.
Get MT Supreme Model and enable it.
Log in to MT on the device utilizing your brokerage account information.
And in the Navigator browser, beneath Expert Advisors, you’ll view a comprehensive MT Supreme Edition software.

As you’ll see, choosing the best system and working with a reputable broker are vital trading factors.

Usage of Currency Strength Meter

After you’ve downloaded MT Supreme Version, obey these measures to use the Foreign exchange-correlation matrix:

Enlarge the Expert Advisors list in the Navigator tab.
Throughout the popup window, create any personalized parameters you want.
To access the matrix, press ‘OK.’

This can be difficult to use MT if you are unfamiliar with all of it. Whenever it applies to using correlation coefficient, the real strength currency meter employs sophisticated algorithms while being simple to operate. It also helps users to select a power for a specific time frame. Usually, up to 200 bars are required for intraday dealing, whereas approximately 50 bars can suffice for scalping.

Begin with the below periods for various trading timescales like a general rule:

Intraweek Swing Trading:	H1 or H4	500 Bars or 200 Bars
Scalping:	M5	50 Bars
Intraday Trading:	H1	200 Bars

How Can You Use the Real Currency Strength Meter to Its Full Potential?

Remember that correlation varies over time, and also, that experience is not necessarily a reliable predictor of potential correlations. On the other hand, this data could be used to create your own strategy on currency strength and reduce your overall portfolio exposure. Follow these pointers:

Avoid Opportunities that Cancel One Another Out:

When you witness two currency pairs moving in opposing directions almost all of the day, you can understand that having buy positions in each of these currencies alleviates any possible gains.

Broaden with Lower Risk:

Through investing in dual currency pairs which are very often positively correlated, you can reduce risk whilst retaining an optimistic strategic outlook across periods.

Hedging Exposure:

When hedging two forex pairs with proximity and a negative correlation, risks can be reduced. The logic is straightforward. Whenever a currency pair drops in value, its opposite currencies having a negative association with that pair would most likely win, but at a weaker end price. Though such a plan won’t absolutely eliminate losses, it would almost certainly limit them.

Ultimately, much like any other technical instrument or predictor, the Forex correlation matrix has flaws. The first is that the currencies strength measure only conveys a minimal amount of data. As a result, it’s important to think about how currencies’ strengths and weaknesses work in the long view.

The following items are included in the long view:

If there are any compelling grounds to believe the currency meter’s tale?
Does the currencies meter, like many metrics, correctly tell stories?
Is the upward trajectory likely to persist?

Conclusion

Like many other technical instruments, Currency strength meters are much more efficient if used combined with several other metrics. A strength meter, for instance, may be used to supplement or validate what the other indicators are suggesting.

When an instrument is overvalued or underpriced, the Relative Strength Index (RSI) helps determine whether it is oversupplied or underplayed. We can better understand a country’s currency intensity and ability to improve or weaken by contrasting this detail in a currency strength meter.

If you ever wish to use a currency strength meter, you should first do so in a risk-free demo trading account. I hope this article helps you. All the very best for your currency adventure!

Price Action Trading System

April 13, 2021 by Fxigor

If you are in the financial market, you may probably know that price action is the most used stratify to gauge the exact movement of a financial asset. It doesn’t matter that you are a short-term trader or a long-term one; price action indicators are still crucial.

Trading using price action becomes very easy and still works like a charm whether it’s the stock market, commodity market, or forex market. If you have noticed, all the most used indicators are made up of price movements, and thus if you want to sustain yourself as a trader in the market, you need to learn them. We have covered all that you need to know about forex price action indicators, forex price action strategy, best price action indicator, and much more. Whether you are a novice or a professional forex trader, this would help you enhance your skills and brush up your knowledge.

What is Price Action?

Price action represents price movement that has aggressive initiation activity and strong price rejection of higher or lower prices. Usually, price action implies trading without indicators based on price levels and price movement analysis. However, modern trading strategies use pattern recognition indicators that can help in price action trading.

Price action patterns have 3 stages:

Sideways price action area
Aggressive initiation price activity
Strong price rejection of higher or lower prices

Price action example:

The price action example below shows a strong yearly support area (blue area). Price action is presented with a red candle with a long wick (yellow arrow on image).

In theory, an analysis of a financial asset’s rate movements is referred to as ‘price action.’ Market participants who use price action investing techniques search back in time and see any hints about where the trend may go now. The most popular price action metric is the analysis of price bars, including information like an asset’s opening and closing prices and even its high/low price points for a given time span.

The foundation of price action trading strategy is interpreting such data. In reality, in response to what actually is the price action, it’s possible to say – it is the analysis of the behavior of both market participants, aka buyers and sellers,s in a specific area of the market. Mostly, as a result, by evaluating what the other market players are really doing, participants may gain a distinct advantage in their investment choices.

Candlestick charts have been the most widely employed price points utilized as a price action predictor. Candlestick data analysis is available on any market site worldwide, demonstrating how common price action trading becomes.

Price action trading system

To create a price action trading system, you need to define support and resistance levels on the chart and monitor candlesticks with long wicks. In that case, you will analyze supply and demand zones and strong price rejection of higher or lower prices.

Step 1: Define important support and resistance levels. For example, you can download supply and demand indicators that will draw important price levels in MT4.

Step 2: Monitor candlesticks high and low in support and resistance area. Wait for fast and strong price movement (“price action”).

You can use various indicators that draw important price levels or analyze price volume and price movement.

We already recognize that price action is just the analysis of both market participants actively interested in a particular market, as mentioned earlier. A candlestick seems to be the most widely employed price action tracker because it provides traders with valuable details like stock prices and maximum and minimum price ranges over the desired timespan. Consider the following case:

Two candles would show an entire day’s range of trades when you look at a regular chart of a company. Both candles provide traders with valuable data:

The maximum and minimum price ranges indicate the trading day’s highest and lowest prices.
A seller flame, which has a black or red frame, indicates that sellers prevailed during the trading day’s combat. When the close market price is much less than the starting price point, that’s the case.
A buyer candle, which has a white or green frame, indicates that buyers have secured the trade war. Since the close price point is higher than those of the starting price point, this really is the case.

Among the first steps in developing a price, an action plan uses this basic candle system. Consider the following case:

When the next candle follows the seller candle and creates a new bottom, it indicates that sellers are sufficient to retain, turning a profit. Any traders would take short /sell bets or keep short positions due to this downturn.
When the next candle, just after the buyer candle, makes a new peak, it indicates that investors are likely to keep purchasing the stock. Any participants will take long /buy contracts or keep long positions they already have due to this strength.

Candlesticks could be used as a market action tracker in various ways, including this form of price action analysis. On the other hand, these same candles commonly shape trends that could be used to create market action trading strategies. Now let us try looking at where these trends function best before you dive at them.

Price action investing should be used on all stock exchanges, and it includes analyzing every one of the buyers and sellers. Forex, equity indexes, bonds, shares, and commodities are all examples of this. On candlestick graphs, users can see products in all of these assets and use a price implementation strategy.

The foreign exchange market, on the other hand, has several distinct benefits towards price action investors, like:

A good representation for buyers and sellers amongst all nations, operates 24 hours each day, for 5 days per week.
A high level of liquidity – allows you to move in and out of stocks in microseconds.
Small spreads – many, although not all, foreign exchange currency pairs have small spreads that will help traders save money on commissions.
Leverage – Since the currency market is a leveraged practice, one can manage a big position with just a limited initial investment. Kindly trade wisely, for it could result in major gains as well as significant losses.

Above are all just a few explanations that price action trading has become common in the foreign exchange market. Throughout the following segment, we’ll use the Foreign exchange market to illustrate four separate price action trading techniques. The first 3 price action trade techniques are appropriate for swing trading, while the last is appropriate for day trading, specifically scalping.

In the next part of this article, we will analyze price patterns, various candlesticks patterns that show fast price movement.

Price Action Forex Trading Strategies

A trading plan must include three components: How, What, and Why.

The fundamentals of your trading are the ‘how.’ In a nutshell, this is the way you’ll do trade. Such research entails understanding the entrance, stop-loss, and goal price ranges. And besides, investing is mostly about odds, and you’ll need to safeguard yourself and limit your risks if the market corrects against you.

The result of a trade is really the ‘what.’ What else would you try to get out of it? Would that be a longer or shorter transaction? It all leads to handling the transaction to profit and handling yourself when the result isn’t what you expected.

That ‘why’ seems to be the purpose you’re thinking about trading a market segment. Price behavior patterns are seen in this scenario. The price action research will give you an advantage in predicting when the stock would go forwards or backward soon.

Harami Price Action Strategy

Harami Price action strategy implies defining important price levels and then watching the harami candlestick pattern as an opportunity to enter into trade.

Harami is really a two-candle pattern that reflects market uncertainty and is mainly implemented for a breakout trade. It’s known as an ‘inside candle formation,’ since one candle develops within the spectrum of the prior candle, from top to low. This is an illustration of a bearish as well as bullish harami price action pattern.

Whenever the maximum and minimum ranges of a seller candle grow inside the high and low ranges of a prior buyer’s candle, the bearish harami candle is formed. It reflects market uncertainty, which might contribute to a downward reversal since no extension to shape a new peak is in view.

Whenever the maximum and minimum ranges of a buyer candle grow inside the high and low ranges of a prior selling candle, the bullish harami candle is created. It reflects sector uncertainty, which might contribute to a turnaround to the upward since no progression to shape a low point is visible.

The following is an overview of bullish as well as bearish harami price action patterns.

As such, a market action trading tactic, how can you execute such patterns? There seems to be no one-size-fits-all solution. Some traders, though, do this as an only breakout strategy. A few guidelines to consider:

Bullish Harami Pattern Trading:

Recognize a bullish harami trend – the buyer candle’s maximum and minimum scale grows within a prior selling candle’s upper and lower zone.
Place your order one pip well above the previous candle’s high point.
Set a stop loss 1 pip just below the prior candle’s low level, and that would provide you with some space for your trade.
Aim for a reward-to-risk ratio of 1:1, which implies you can aim for the same number of pips through entry to avoid loss.
You should cancel the trade if the opening of a new candle has not triggered it. When the trade is already activated, retain this in the markets until the stop loss or trigger rates are met.

This is an illustration of the same.

Using the principle described, one should enter at a price higher than the last candle’s peak by having a stop loss just at the preceding candle’s bottom. When the order doesn’t really execute by the start of its next bar, a trader may easily cancel the contract and aim for another opportunity. If that has been activated, your stop loss or target rates would determine whether you make a profit or not.

The Bearish Harami Pattern Trading

Recognize a bearish harami trend – the selling candle’s maximum and minimum range grows within the same prior buyer candle’s upper and lower zone.
Place the order 1 pip just below the previous candle’s low point.
Set a stop loss 1 pip just above the prior candle’s max level, which would provide you with some space for your trade.
Aim for a reward-to-risk ratio of 1:1, which implies you can aim for much the same number of pips through entry to avoid loss.
You should cancel the contract if the transaction has not been caused by opening a new candle. When the trade is already activated, retain that in the markets till the stop loss or the target rates are met.

The Hammer Price Action Strategy

Hammer Price action strategy implies defining important price levels and then watching the hammer candlestick pattern as an opportunity to enter into trade.

The hammer is a bullish price action candle indicator indicating a greater likelihood of the stock going higher than downward. It is almost always seen in rising markets. The below is an illustration of a hammer price action pattern strategy.

The price is being pushed to a new low by buyers. On the other hand, the buyers really aren’t powerful enough to hold the weak and opt to exit their shares. This leads the market to rebound, causing sellers to enter the market as well. Both the open/close price ranges of the candle would have been in the top half. The closing will typically be lower than the opening; however, it is the best indicator for price action if the closing is above the open price point.

The trend shows that a push upward is based largely on the open/close, high/low price points.

The Entrance:	Whenever the next candle starts trying to smash the hammer candle’s high, it might be a good time to join a deal.
The Stop Loss:	The lowest of the hammer candle may be a potential stop-loss point. If another market spikes the entry price though no new buyers come, that indicates that the market will have to drop lower to get more buyers. As a result, the stop loss isn’t too near to the entrance.
The Objective:	There’s a whole range of methods to exit a profitable trade, including leaving on the closing of a pattern, hitting rates of support/resistance, or even using a trailing stop loss.

The Shooting Star Price Action Strategy

The shooting star price action strategy implies defining important price levels and then watching the shooting star candlestick pattern as an opportunity to enter into trade.

The shooting star is a bearish trend that indicates that perhaps the price is more likely to move lower versus higher. The candle is almost always seen in down-trending environments. It’s also, in reality, the hammer’s exact opposite. The below is an illustration of a shooting star price action pattern.

The shooting star indicates that investors are driving the stock to new highs. The investors cannot maintain their spot at just the high and opt to exit those holdings. As a result, the demand falls, causing buyers to enter the market. That both opening /closing price ranges must be in the candle flame’s lower half. Closing will typically be higher than the opening; however, it is better if the closing is lower than the open price point.

The trend shows that a transition downward is likely based on the open/close, high/low price points.

Once the candles emerged in these cases, the price moved lower. But, this is not a promise.

The Entrance:	Whenever the market actually begins to smash the lowest of the shooting star pattern, it might be a good opportunity to initiate a trade.
The Stop Loss:	A peak of the shooting star might be a potential stop-loss stage.
The Objective:	There’s a whole range of methods to quit a profitable trade, including leaving on the closing of a candle, hitting levels of support/resistance, or even using a trailing stop loss.

Scalping Forex Price Action Strategy

For intraday traders, a range of foreign exchange price action scalping strategies remains accessible. On the other hand, Scalping needs additional filtering to sell a price action structure since it means making extremely brief trades several instances per day.

Finding markets that have been in a ‘trend’ will allow investors to figure out who is in charge of the demand – buyers/sellers! Moving averages are indeed a helpful trading tool for detecting that. Like the 20days and 50 days moving averages, quick-moving averages are widely used by scalpers searching for short-term movements.

Well, let’s make a few rules for a potential forex market action scalping strategy that utilizes moving averages to determine direction and price action to determine entrance and stop-loss points.

Buying Strategy	Selling Strategy
A 4-Hour Chart	A 4-Hour Chart
The 20 MA placed above 50 MA	The 20 MA placed below 50 MA
Bullish Harami pattern / Hammer	Bearish Harami pattern / Shooting Star
Price action appear between 20 MA – 50 MA	Price action appear between 20 MA – 50 MA
Enter- 1 pip above candle peak	Enter- 1 pip below candle bottom
Stop Loss- 1 pip below candle bottom	Stop Loss- 1 pip above candle peak
Aim- Prior swing high / pip risk (entry minus stop-loss rate)	Aim- Prior swing/pip risk (entry minus stop-loss rate)
Cancel the trade if not triggered by the start of a new candle	Cancel the trade if not triggered by the start of a new candle

This is merely an illustration that makes you curious about how to build your own price action forex trading strategy. Any approach would have effective and ineffective trades, so handle the risk accordingly.

The Final Thought

Price action trading is a versatile instrument that serves as the foundation for various techniques often used by traders worldwide. Isn’t it the time you tried using it in your buying and selling? There are going to be some ups and downs. You will win some trades and lose some, too. But that is part of the trading realm. We hope that this article has helped you to understand forex’s action price trading. All the best!