USD Strength Indicator CUSIV01 Indicator For MT4
Table Of Contents:
- USD Strength Indicator CUSIV01 Indicator For MT4
- Taking readings from the indicator
- Finding a potential trading spot
- Avoid trading the news
- Measuring your risk exposure
- Set realistic goals
- Become a student of this market
USD Strength Indicator CUSIV01 Indicator For MT4 is a very unique indicator with different functionality. It measures to strength overall strength of the USD based on EURUSD, AUDUSD, GBPUSD, and USDJPY. Being a human being, it’s really hard to observe 4 different currency pairs to find the overall strength of the green bucks. It acts more like currency correlation tools which help you to trade the best possible financial instrument.
Partially Automated Trading Besides Your Day Job
Alerts In Real-Time When Divergences Occur
Many professional traders use the USD Strength Indicator CUSIV01 Indicator For MT4 to find high-quality signals. But this doesn’t mean you will place real trades in the market based on this indicator readings. You need to use other important parameters to filter out the best possible trade setups. Being a novice trader, you should never trade with this indicator without understanding its use properly. If necessary, open a demo account and try to learn its functionality so that you don’t have to lose any real money.
Taking readings from the indicator
Understanding the readings of USD Strength Indicator CUSIV01 Indicator For MT4 is very easy. The reading is usually represented in the form of an area chart. The professional traders consider the colors to assess the strength of the USD. If the area chart is represented by red color, it means USD is trading lower against its major rivals. On the contrary, a green area curve represents strong buying pressure in USD.
Taking readings from the USD Strength Indicator CUSIV01 Indicator For MT4 has a small twist. If you this indicator in the USDJPY pair, you need to take opposite readings from the indicator. For instance, if the area chart is in green color, you need to sell USD to make a profit. As a newbie, you might get confused by trading the USDJPY pair. Avoid trading the USDJPY pair with the USD Strength Indicator CUSIV01 Indicator For MT4 for the first few months.
Finding a potential trading spot
Finding potential trading spot based on the readings of USD Strength Indicator CUSIV01 Indicator For MT4 is not so easy. You need to have a proper understanding of support and resistance level. Many professional traders are making a consistent profit just by using their knowledge on support and resistance level. So, is there any use of this indicator? The obvious answer is YES. By using this indicator efficiently, you can easily improve your win rate. Let's see a simple trade setup.
Figure: Short trade setup based using simple settings
The above diagram represents a classic short trade setup based on the readings of USD Strength Indicator CUSIV01 Indicator For MT4.In the indicator window, the green area is slowly gaining momentum and it’s a clear indicator of USD bulls getting stronger. At the same time, the EURUSD pair breached a critical support level. So, it’s very obvious we have a confirmed bearish breakout and executing short trade is the perfect way to make some money.
Avoid trading the news
The USD Strength Indicator CUSIV01 Indicator For MT4 works best during the stable market condition. In the first diagram of this article, you might notice the choppy movement in the AUDUSD pair. This is nothing but the reflection of the high impact news. The reflection of news is also very prominent in the indicators reading. To avoid complicacy in trading, you need to avoid trading during the major news. Keep yourself tuned with the high impact news and you will be able to find great trades at the stable market conditions. Never lose hope if you lose money from the best trade setups. No one can give you the guarantee a certain trade will work. Consider the worst-case scenario before you execute any trade.
Measuring your risk exposure
You might know all the functionality of the USD Strength Indicator CUSIV01 Indicator For MT4, still, you need to trade with low risk. Majority of the rookie traders don’t know their risk tolerance level. Though the trade setup might be very convincing, you should never risk any amount which you can’t afford to lose. Trading is all about managing the risk exposure. And during the process of trading, indicators like USD Strength Indicator CUSIV01 Indicator For MT4 helps you to assess the quality of the trade setup. Those who are completely new in the investment business should risk only 1% of your account balance.
As a new trader, it’s very hard to follow the basic rules of trading business. To avoid such problems, you need to follow a paper-based trading journal. Write down the details of each trade so that you can analyze the data and revise your trading strategy. You can’t make consistent profit by using USD Strength Indicator CUSIV01 Indicator For MT4 at the initial stage. You need to understand its pattern and create a unique strategy based on your personality.
Set realistic goals
The rookie traders often lose money since they don’t know the importance of realistic goals in the trading profession. At times they rely too much on the readings of USD Strength Indicator CUSIV01 Indicator For MT4. Forex trading is nothing but a business and you must rely on logic. Emotions have no place in the investment industry. Set rational goals so that you can make a consistent profit without risking too much.
Become a student of this market
Learning is a continuous process in the trading profession. Based on the global economy, the market changes its behaviors and pattern. And this is reflected in the readings of the USD Strength Indicator CUSIV01 Indicator For MT4. The smart traders always keep themselves updated with the latest market news. You need to develop a strong habit of reading to survive in the trading profession. At times you might lose few trades in a row even though the readings of the USD Strength Indicator CUSIV01 Indicator For MT4 will be perfect. Embrace such loses and consider this as your business cost. Join the professional trading network and see how the pro traders use the USD Strength Indicator CUSIV01 Indicator For MT4.
