EURX - Euro Currency Indicator for MT4
The EURX - Euro Currency Indicator for Meta Trader 4 is an indicator that monitors a basket of currencies and plots 2 signal moving average lines based on the moves from all the currency pairs that constitute the currency basket it is watching. It is used exclusively on the Meta Trader 4 platform and has a lot of benefits it offers traders.
Advantages of using the EURX - Euro Currency Indicator for Meta Trader 4
The EURX - Euro Currency Indicator for Meta Trader 4 automatically monitors all the pairs that constitute the currency basket adjustable from the indicator settings and it monitors all these pairs at the same time, compresses all the price movement happening on these pairs into signals that are then shown to the trader via 2 signal moving average lines. This means that when traders use this indicator, the signals they get are basically an accumulation of aggregated price action on all of the individual currency pairs that constitute the currency basket.
This helps the trader to see a more smoothened picture of what the effect of any global economic activity has on the single pair that is the denominator of the currency basket. This then enables the trader to spot entries into trends not based on the signals of one currency pair but rather, on all of the pairs in the currency basket combined together. A trader can spot entries using the EURX - Euro Currency Indicator for Meta Trader 4 when either of the two signal lines crosses each other and faces one single direction.
Another added advantage of using the EURX - Euro Currency Indicator for Meta Trader 4 is that it allows traders to spot exits from a trend. When using an indicator that aggregates signals from individual currency pairs that form a currency pair basket, signals produced do not just contain the opinions of the trader's working with a single currency pair. The signals produced are an accumulation of all the decisions that traders have made on all the individual currency pairs that make up the currency basket.
This means that if one single pair is trending up and the indicator that represents the currency pair basket is beginning to trend downwards, it might be a warning for the trader who might currently be in an uptrend or who might be trying to get into an uptrend that that trend may soon be over and that the trader should carefully watch out for a downtrend in case a price reversal is about to occur. This information then helps the trader to better preplan their trade positions and decisions.
A major advantage of using the EURX - Euro Currency Indicator for Meta Trader 4 is that it helps traders to participate fully in the individual waves of a trend. This means that the trader would know when a new wave of movement is beginning to happen since that wave would start on the different currencies that constitute the currency basket and would, in turn, make the EURX - Euro Currency Indicator for Meta Trader 4 to also move in that direction. That way, once a new valid trend across all of the individual moves begins to happen, the trader can participate on the move rather than taking signals to get into waves just from one currency pair alone. This means much more stable signals that are not just temporary moves on any individual currency pair and this also helps the trader to stay out of price manipulations to an extent.
Using the EURX - Euro Currency Indicator for Meta Trader 4 might also require that the trader uses the higher time frames a lot for more accurate signals. This implies that if a trader wishes to generate more accurate signals in the correct direction of the trend across all of the pairs, it would serve the trader better to deploy this indicator on a larger timeframe chart than a smaller timeframe chart since this would help the trader avoid any false moves that might be generated on such lower time frames and stay only with the bigger moves generated on the larger time frames.
The EURX - Euro Currency Indicator for Meta Trader 4 can combine well with several core Prices action strategies like the range breakouts and the trendline breaks and bounce strategies. This means that a price action trader can very efficiently incorporate using this indicator into his toolkit since when such a trader spots a trend, what they usually want to know is the likely direction that the trend would break out to.
Also, the trader who trades trend line bounces or breaks would also want to know what direction the price would move after a bounce happens. This would immediately help the trader to set up a position in the said direction, pending when price action breaks out in such direction. When such a trader spots a range happening, the trader can then employ the indicator to help him or her to identify the direction of the breakout. That way the trader can make a profit from such price moves.
A more advanced way to read the EURX - Euro Currency Indicator for Meta Trader 4 would be for a trader to try and spot times when the indicator has formed a flat, almost horizontal surface or is creating very small. moves that are neither going up or going down. This should also signify to the trader that price action might very likely be ranging on some or a majority of the pairs that make up the currency basket.
The trader can then watch the indicator to see when its signal lines would breakout from that indicator range as this might usually drag the prices of all the currencies that constitute the currency basket in whatever direction that the majority of the other currency pairs are going sooner or later. This can be very informative for the trader as well as helping him or her to plan ahead for the next price move.
Also, these flat areas of inactivity can then enable the trader to prepare for a likely pending big move since most of the time, big moves usually occur after price and the indicator has been stuck in a range together for a while.