Trader has a wide range of technical analysis tools at his disposal, including indicators. Some of them form signals. The trader only needs to evaluate them and make a decision to enter the market. There are indicators that do other work. They provide the trader with additional information about the market situation. This helps to improve the quality of analysis, and thus improve trading results. Today I will tell you about one of these indicators – Cruscotto. He’s assessing the strength of currencies.

For installation in MT4 we use the standard scheme. I have described it in the article “Cheat sheet on Metatrader 4”. In the archive that I will link to at the end of the article, you will find three files, i.e. three Cruscotto options. I want to warn you, they differ from each other only by the way of displaying information about the strength of currencies on the chart. It can be placed horizontally, vertically or in the form of a square. If you want the data to be displayed vertically, you need to select the appropriate version of the indicator – Cruscotto_v1_Vertical. On the chart it will be presented as follows:

Indicator parameters

As we see in the screenshot, the information
the price chart is presented in the form of squares of two colors. Red indicates
the weakness of the currency, the green is its strength. The more squares there are, the more
weaker/ stronger currency. To display the force in a digital expression, the following is used
scale from -100 to +100.

You can specify zones in the settings,
where the trader intends to consider the possibility of opening
of trade positions. For this purpose there are corresponding parameters – buy_level and sell_level.

Parameters X_corner and Y_corner are used to define the scaling of the table.

In order to enable the display of such trading instruments as gold and oil, you should use the Commodities.


Recommendations for use in trading

There are two ways of working with this
a techanalysis tool.

He can serve as a trade filter
of the signals. If, for example, there is a signal to buy a pair of euros/dollar and
this indicator confirms the strength of the euro, then the probability of successful working out
of the received signal will be high.

In addition, the Cruscotto indicator can be used to determine
of the currency pair to be traded on. For this purpose, in the information table
you have to find the strongest and weakest currency at the moment. After that…
to switch to a chart of a currency pair that has both of these currencies and look for
optimal entry points.

In conclusion, I would like to say that since the indicator data occupies a significant part of the chart space, for comfortable trading it should be opened in a separate window.


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