Currency Strength Exotics V3.0 – A Comprehensive Review
Currency Strength Exotics is an innovative technical indicator for the MetaTrader 4 trading platform that allows traders to analyze the strength and weakness of major, minor and exotic currency pairs, as well as commodities, indices and futures contracts.
Overview of Currency Strength Exotics V3.0
Currency Strength Exotics was developed by expert trader Bernhard Schweigert and released in 2016. It has been consistently updated since then, with the latest version being 1.90 as of January 2020.
The indicator displays the relative strength of the 8 major currencies – AUD, CAD, CHF, EUR, GBP, JPY, NZD and USD. Additionally, it allows the user to add one more symbol as a 9th line, which can be an exotic currency pair, commodity, stock index or futures contract.
Some key features of Currency Strength Exotics:
- Analyze strength of exotic currency pairs, commodities, indices and futures
- Compare strength of any symbol priced in USD, like Gold, Oil, US30, etc.
- Identify divergences between USD and other symbols
- Customizable parameters and settings for maximum flexibility
- Works on all timeframes from 1 minute to monthly
- Easy-to-read graphical interface
How Currency Strength Exotics Works
Indicator is displayed as an oscillator-style indicator consisting of 9 lines at the bottom of the chart. Each line represents the real-time strength of one currency or symbol.
The indicator calculates strength based on a proprietary formula that takes into account current and historical price action. Strong uptrends result in the line rising, while downtrends cause the line to fall.
The key feature of Currency Strength Exotics is the ability to add any symbol as the 9th line. This allows comparing the strength of that symbol relative to major currencies, especially the US dollar.
For example, if Gold is added as the 9th line, the indicator will analyze if strength is coming from Gold or weakness is coming from the US dollar. This provides extremely valuable insight for traders.
Divergences between the exotic symbol’s strength and the US dollar’s strength can signal major trading opportunities. If Gold is rising while the US dollar is falling, it’s a sign of Gold strength rather than USD weakness.
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Here are some of the main benefits of using Currency Strength Exotics for trading:
- Identify new trends early – Spotting divergences between currency pairs and exotics can signal the start of a new trend very early. This allows traders to capitalize on emerging opportunities.
- Confirm trade signals – The indicator helps confirm if a potential trade signal on an exotic pair is actually based on strength of that symbol rather than USD weakness. This gives traders greater confidence in their trading edge.
- Improve risk management – Analyzing relative strength helps determine if a move is likely to continue or stall out. This allows placing tighter stops and improving risk management.
- Enhance scalping strategies – The indicator can be used across all timeframes, making it useful for scalpers to identify short-term strength and weakness.
- Simplify analysis – With all the major currencies plus one exotic or commodity on one indicator window, analysis becomes simpler and less time consuming.
- Customize settings – A wide range of adjustable settings allows traders to tweak the indicator based on their preferences and trading style.
- Get an edge trading exotics – Trading thinly traded exotic currencies can be risky. The indicator levels the playing field and provides an edge.
Using Indicator Effectively
While Currency Strength Exotics is simple to understand, using it effectively does require some practice and experience. Here are some tips:
- Use it in combination with a solid trading strategy, rather than as a standalone system. The indicator works best when confirming trades based on technical or fundamental analysis.
- Focus on divergences between the USD and exotic symbol lines for the highest probability trades.
- Be aware of important technical levels on the chart that may cause the lines to reverse.
- Adjust the settings periodically to optimize the parameters for current market conditions.
- Use it on multiple timeframes to identify trades and manage risk. Higher timeframes show long-term strength, lower timeframes reveal short-term turning points.
- Spend time analyzing how the indicator behaves with different exotic symbols like Gold, Oil, Bitcoin, etc. before using it live.
- Be patient and wait for the lines to clearly diverge before taking a trade. Rushed trades lead to trouble.
Is Indicator Worth It?
Given its unique features and versatility, Currency Strength Exotics is absolutely worth its very reasonable price of around $100.
The insights it provides into exotic currency pairs, cryptos, commodities and more than justifies the cost many times over. It’s one of the most valuable indicators available for traders today.
However, as with any indicator, success comes down to the trader’s skill in interpreting and trading the signals. Currency Strength Exotics provides high-probability trade signals, but discipline and risk management are still essential.
For traders struggling to trade exotic currency pairs or commodities effectively, Currency Strength Exotics can provide a whole new edge. Both novice and experienced traders will appreciate its ease of use and intuitive graphical interface.
Overall, Currency Strength Exotics for MetaTrader 4 platform is a worthwhile investment for any active forex or crypto trader looking to expand their technical analysis toolkit.
Currency Strength Exotics is an innovative indicator that simplifies the process of gauging relative strength and weakness between the 8 major currencies, exotic currency pairs, as well as commodities and indices.