FX Power for the MetaTrader 5 (MT4 also available) is an indicator presented as “the first currency strength meter with a complete history across all timeframes”. Essentially it can be used standalone or as one of there indicators that compose the author’s Simple Trading System. The FX Power indicator developers are the Stein Investments team from Germany. The latest version is 3.76 updated in March 2020 and the first version is published in 2016.
Overview
Using this indicator requires some basic knowledge about the values of the currency relation measurements or the Delta. Although the logic is simple, the use of this indicator requires you to follow a certain strategy, and by this we mean it is not intended for scalpers on the 1 or 5M timeframe. The author has composed a very nice page about the indicator and a youtube video describing all the features of his indicator. The main purpose is to measure movement power or currency strength against others, although it has other purposes that could be used, such as quick chart switching from a single window.
The main features of FX Power are:
- The non-repainting, real-time display for all brokers
- Multiple timeframe selection that is not by default
- The movable panel display suitable for higher resolutions
- Automatic configuration
- Alerts
- EA friendly
The author presents some usage tactics but in our experience, if the indicator is used standalone and not as part of the Simple Trading System, it is completely irrelevant as the indicator should be in-line with the trader’s custom system. Also, the indicator does not represent all in one trading solution. However, Stein Investments presents 3 possible scenarios:
- Tradeline crosses. Each line represents a currency.
- Use the combination of two time periods to confirm a cross.
- Use currency combinations, if two currencies are getting stronger than one, the signal is more probable.
The indicator has a great and intuitive way of changing analysis timeframes from a control panel list box. The panel alone is very nicely coded, has very useful tools. The currency strength has several modes of display in this panel, as a HeatMap, DeltaMap, Symbol, Compact, and Equalizer. The Equalizer will display currency power similarly as music tone equalizer power meters, Compact will shink the panel to show only major single currencies with their Delta value, Symbol view that will show only the currently active chart currency pair, and the most interesting DeltaMap that will show an 8×8 matrix using the 8 majors and the pair combinations with the respective Delta value – excellent for searching trade opportunities on both directions.
Clicking the crosshair located on the panel will show all 8 currencies on the indicator chart if you want to see the relation to others. According to the author, the Delta peaks, or values above 6 or below 3, are considered as good exit indication, similarly to the RSI oversold and overbought levels. The Delta panel is moveable across the MT5 and can be placed anywhere you like with the drag and drop.
Settings for FX Power are very nicely categorized and have a plethora of options for each. Starting with the analysis period, you can select many non-default ones such as 8H, 10 minutes, 3 days, or 2 years. Customizing the panel and indicators looks is easy offering the line style, color for each currency, and similar. Alerts customization is also great with a good understanding of the trader’s needs. In this light, you can set up your alerts on line cross, certain level (Delta or currency) trigger alert be it low or higher threshold. Mobile, email, or sound notification alerts are optional.
Service Cost
The price tag for the FX Power meter indicator is $49, the same is for the MT4 version. Renting it is possible, $29 for 3 months or $39 for the whole year. There are 10 activations offered after purchase. A demo is available. The price is right at the point, the indicator is high quality and useable. Of course, there are similar ones for free if you are picky, but probably not the same quality or options.
Conclusion
The indicator received great reviews. The MT5 version has only 3 user reviews from the MQL5 repository but the more popular MT4 has an almost perfect 4.9 ratings from 70 reviews. The ones that left 1 star were hard to find and totally irrelevant, like this one:
“VERY DANGEROUS discretionary trading approach you can burn all your deposit if you don’t be skilled enough. You need a plan a money management strategy and an exact entry signal approach. BE WARNING WITH THE DISCRETIONARY TRADING SYSTEM THEY CAN BE CATASTROPHIC ESPECIALLY IF YOU DON’T BE SKILLED”.
It can be said that this indicator does exactly the job it is intended to the point of perfection. The combination with other trading systems is great, it can serve also as a filter for entries, as an exit indicator or as trade entry. Our recommendation is to use as an opportunity scanner on multiple timeframes, just be sure to use the right one for your trading.
This Forex service can be found at the following web address: https://www.mql5.com/en/market/product/16252
