Definition
The ROC Multi-Currency Indicator for MT4 provides you with information on the rate of change of the chosen currencies. The indicator includes four different currencies, each unique in its own manner.
| Indicator Title | ROC Multi Currency Indicator |
| Indicator Size | 22.6 KB |
| Trading Platform | Metatrader 4 |
| Indicator Type | Informational |
It presents you with four lines of red, green, blue and orange color. When you first apply the indicator, the lines look like waves.
Working of ROC Multi Currency Indicator?
The ROC Multi Currency Indicator identifies the strongest and weakest currencies. You are given four lines in the colours red, green, blue, and orange. When you initially use the indicator, the lines seem like waves.
The indicator depicts the strongest currency as green, while the worst one overall is represented as red. The second- and third-strongest colours are represented by the hues blue and orange, respectively.
Instead of offering entry and exit points, the ROC Multi Currency Indicator for MT4 identifies the rate of change of each currency. The indicator displays waves that compare four well-known currencies to one another.
The indicator can assist you in determining whether to go long or short when trading on pairings of particular currencies. For instance, if you trade EUR/USD, you can determine which of the two currencies is stronger or weaker and trade in accordance with that information.
You can use the indicator to help you assess the strength and weakness of other pairs as well. When trading GBP/JPY, for instance, when JPY is the weakest currency, you would take a buy position on the pair. As the indicator doesn’t give trading entries, you need to combine it with others like the RSI or the Moving Average to enter or exit the trade.
Trading Setup
Here is the buy and sell strategy for the indicator:
Buying Trade
- Find out which currency in the pair is stronger or weaker.
- The RSI need to be under 30.
- Wait for the price movement to move forward before entering long.
- Set a stop-loss order beneath the most recent swing low.
- When the RSI rises above 70, close the position.
Selling Trade
- Find out which currency in the pair is stronger or weaker.
- Over 70 should be the RSI.
- Wait for the price action to continue before entering the short position.
- Set a stop-loss order beneath the most recent swing high.
- If the RSI falls below 30, exit the trade.
Conclusion
The ROC Multi Currency Indicator for MT4 displays the rate of change for four different currencies across all timeframes. You can determine which currency is the strongest and which one is the weakest based on this. For buy or sell entry, you must combine the indicator with the RSI or the Moving Average.
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