Introduction to the Multi Currency Pair Indicator
One tool that could be valuable to traders would be an indicator that would show the directional bias of each currency pair in one glance and break down which currency pairs are strong and which are weak. The Multi Currency Pair Indicator is exactly this type of tool. It shows the directional bias of each currency pair in a matrix format.
What is the Multi Currency Pair Indicator?
The Multi Currency Pair Indicator is a technical analysis tool which indicates the direction of each currency pair.
This indicator displays the direction of all the currency pairs paired with the EUR, GBP, and USD. This indicator is displayed on a separate indicator window. It displays the EUR, GBP, and USD currencies on the y-axis and pairs these currencies with the EUR, USD, JPY, GBP, CHF, AUD, and CAD currencies on the y-axis. The indicator plots boxes on the matrix representing each currency pair. It plots green boxes to indicate a bullish bias, red boxes to indicate a bearish bias, and yellow boxes to indicate a currency pair with no directional bias.
How the Multi Currency Pair Indicator Works?
The Multi Currency Pair Indicator uses a complex algorithm which looks for confluences to identify the directional bias of each currency pair. It has an underlying moving average and Relative Strength Index (RSI) included within the algorithm. It also compares the open and close of price as an additional criterion for identifying directional bias. The indicator then plots the green, red, or yellow box to indicate the directional bias whenever the currency pair is showing signs of a trend or momentum based on confluences.
How to use the Multi Currency Pair Indicator for MT4
The Multi Currency Pair Indicator has a few options within its settings, most of which are aesthetic modifications on the matrix.
The “History Shift” option is one of the two inputs that is not merely for aesthetics. It basically shifts back the period in which the indicator would look for directional bias indications.
“Draw V Line” toggles the indicator to plot a vertical line on the candle which the indicator is using to identify direction bias, which can be modified by the “History Shift”.
The “scale X”, “scale Y”, “offset X”, “offset Y”, and “font Size” options are the remaining settings options which are used to modify the aesthetic presentation of the indicator.
Multi Currency Pair Indicator as Trade Direction Filter
The Multi Currency Pair Indicator is primarily used as a trade direction filter. Traders can identify the directional bias of each currency pair presented on the matrix based on whether the box corresponding to the currency pair red or green. Users would then have an idea which direction they should take if they would make a trade.
Having all the currency pairs displayed on one matrix allows users to identify which currencies are strong and which are weak. This is another important piece of information which can help traders decide which currency pair is best to trade at that moment.
Conclusion
Although this indicator is not an indicator which provides trade signals, it is still a very useful technical indicator. This is because it allows traders to visually identify the directional bias of each currency pair in one glance. This allows them to single out which currency pair is ideal for trading and which trade direction to take.
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