Binary Options Indicator Currency Slope Strength is a modern advanced tool for analyzing the strength of currencies. Recently, more and more attention of traders has been attracted by strategies based on assessing the relative strength of currency pairs . To successfully apply them in practice, a tool is needed that can quickly determine which of the two currencies in the pair is leading and which is lagging behind, and open a deal in the direction of the stronger one.
This is the principle on which the Currency Slope Strength binary options indicator is based. How to use it in practice and how effective it is, we will find out in this review. The developers are asking $85 for it, but how justified is this price, and is it worth any money at all, let's figure it out together. Those of you who want to join the testing will find a link to download this indicator at the end of the article.
Content:
- Characteristics ;
- Installation ;
- Overview and settings ;
- Currency Slope Strength Trading Rules ;
- Opening a Call option ;
- Opening a Put option ;
- Conclusion ;
- Download Currency Slope Strength .
Characteristics of the Indicator for Binary Options Currency Slope Strength
- Terminal: MetaTrader 4 ;
- Timeframe: M15;
- Expiration: 4 candles;
- Option types: Call/Put;
- Indicators: currency-slope-strength.ex4;
- Trading instruments: currency pairs , commodities, cryptocurrencies , stocks;
- Trading Hours: Active market hours;
- Recommended brokers: Quotex , Pocket Option , Alpari , Binarium .
Installing the Currency Slope Strength Binary Options Indicator
The Currency Slope Strength indicator is installed in the MetaTrader 4 platform as standard. To do this, you need to add it to the root folder of the terminal by selecting “File” in MT4 and then “Open data directory”. In the opened directory, you need to go to the “MQL4” folder and then to “Indicators”, then drag all the necessary files there. Templates are installed in the same way, but are placed in the “templates” folder. You can read the installation instructions in more detail in our video:
Review and Settings of the Indicator for Binary Options Currency Slope Strength
The binary options indicator Currency Slope Strength helps to determine the dominant currency in a pair. Based on this information, traders can make assumptions about the near future and the possible start of a new rally. On the other hand, this tool copes well with assessing the current market phase. Understanding the principle of its work, it will be quite difficult to miss the brewing correction.
There are several varieties of this oscillator on the market. Although they are all built on a similar principle, not all have the same calculation formula. For example, some of them can evaluate the rate of price change ( ROC ), others - the relative strength index ( RSI ), others - the commodity channel index ( CCI ) or calculate the strength of the relationship between markets ( correlation ).
As we can see, there are many options for creating a relative currency strength index. However, the binary options indicator Currency Slope Strength under study is calculated based on the Triangular Moving Average ( TMA ). The calculation of the "Triangular Moving Average" is similar to the simple moving average ( SMA ), but with additional smoothing.
The picture above shows both moving averages with one averaging period – 7 bars. As you can easily see, the “triangular” moving average is smoother than its classic counterpart and lags slightly behind the SMA.
To determine how strong a currency is, Currency Slope Strength evaluates the slope of the TMA. Instead of the usual average values according to the TMA formula, the currency strength analyzer uses its own algorithm to calculate, which allows it to avoid the lag typical of the “triangular moving average”.
This technical analysis tool has many settings, divided into 4 blocks:
- General Inputs – general settings;
- Indicator Inputs – indicator parameters;
- Currency Inputs – selection of currencies for calculation;
- Colour Inputs – set the colour for displaying each currency.
Now let's look at each of them in more detail.
General Settings
In this section, the user can set the symbols by which the relative strength will be calculated, specify the maximum number of bars for displaying the oscillator, enable/disable weighting only by the chart symbol or by all currencies from the “Currency inputs” block, set fonts, add or remove values for weekends, display only the dynamics of currencies of this symbol on the chart.
Indicator Parameters
This item allows the user to specify the calculation timeframe , set the minimum threshold for triggering a signal about the intersection of relative strength indices, manage notifications in the form of a pop-up message in the MetaTrader 4 terminal, send letters by e-mail or using Push messages.
Selecting Currencies for Analysis
In this block you can select currencies to calculate their relative strength.
Display Settings
Here you can set up the appearance of the lines responsible for displaying the dynamics of currencies, timeframe, intersections and background.
Operating Modes
This tool can operate in two main modes:
- Displays all currencies enabled for analysis;
- Visualization of the currencies that make up the pair on the chart it is attached to.
Let's look at how each of them works.
In the first case, the “basement” section will show indices of all currencies opposite which true is set in the “Currency inputs” block:
To enable this mode, the “weightOnlySymbolOnChart” parameter must be set to false.
For the second case, to activate the operating mode for the currencies that make up the pair, the “weightOnlySymbolOnChart” parameter must be set to true:
Types of Signals
The signals of the binary options indicator Currency Slope Strength can be of three types:
- Intersection of lines;
- The indices move in parallel;
- Crossing the channel boundary.
Intersection of lines
The intersection of the curves of the basement oscillator indicates a change in trend. In this case, a vertical yellow stripe will appear in the quotes panel.
And a standard pop-up message (alert) of the MetaTrader 4 trading platform indicating the direction of the intersection.
If the lines intersect near the zero mark inside the channel, this means that none of the currencies in the pair has yet acquired sufficient momentum for further exchange rate growth or decline. Therefore, you should not count on a large profit based on such a signal alone. On the other hand, it may precede the emergence of a strong upward or downward trend. The best thing you can do in this case is to wait until the situation becomes clearer.
The indices move in parallel
If both relative strength indices move parallel to each other, this indicates the beginning of a flat . If there is no leading currency in the pair, it means that traders have temporarily lost interest in this instrument, which is expressed in such behavior of the oscillator.
Crossing the channel boundary
One of the strongest signals of this oscillator is the exit of both indices beyond the channel boundaries set in the “LevelCrossValue” parameter. By default, it is set at 0.2, but we recommend selecting this value for a specific currency pair individually.
If both lines go beyond the channel, one currency starts to slow down, and the other one starts to speed up. This is usually a sign of a new trend and a good opportunity to open a deal. The ideal situation is when one currency breaks through the upper boundary of the channel, while the other breaks through its opposite side. As a rule, after such a signal, a stable unidirectional price movement occurs.
Please note that the indices do not always cross both borders at the same time. Sometimes this happens with a slight delay of one or two (sometimes more) bars. However, this is potentially a very good moment to buy options or make trades if you are trading Forex . Crossing the +0.2/-0.2 levels is one of the main signals generated by this indicator.
Trading Rules for Binary Options Indicator Currency Slope Strength
The Currency Slope Strength binary options indicator is a valuable tool for those who prefer to “bet on winners.” It makes it quite easy to determine the leading currency in a pair, and to plan your future trades based on this information.
However, despite the presence of such an advanced analysis tool, we recommend adhering to the postulates of trend trading, which you can learn about from a special selection of articles on our website:
- How does a trend work in the markets?
- Identifying and using bullish and bearish trends.
- Market phase changes .
- How to identify a flat market?
For BO trading, the recommended expiration time is 3-5 candles, depending on the instrument. However, for a specific currency pair, the expiration should be selected based on the results of testing on historical data and a specific time frame.
Opening a Call Option
- The blue line crosses the green horizontal line of the basement oscillator upwards.
- The red line of the basement oscillator crossed the red horizontal downwards.
- We buy a Call option at the opening of a new candle.
At the candle close, the blue line of the basement oscillator broke through the upper boundary, and the red line broke through the lower boundary, which indicates the emergence of a new impulse for growth. At the opening of a new candle, we open a Call.
Opening a Put Option
- The red line crosses the green horizontal line of the basement oscillator upwards.
- The blue line of the basement oscillator crossed the red horizontal downwards.
- We buy a Put option at the opening of a new candle.
At the candle close, the red line of the basement oscillator broke through the upper boundary, and the blue line broke through the lower boundary, which indicates the emergence of a new impulse to decline. At the opening of a new candle, we open Put.
Conclusion
If used correctly, the binary options indicator Currency Slope Strength has every chance of becoming your favorite trading tool. It allows you to evaluate the potential of currencies in a pair at an early stage of trend formation. It is definitely worth the $85 that the developers ask for it, and can be successfully used for both scalping and swing trading, in combination with other trend indicators .
The binary options indicator for currency strength analysis is recommended for use not only by beginners, but also by experienced traders who want to add a tool for selecting the most promising currency pairs to their trading strategy . With its help, you can evaluate which of them are profitable to trade at a certain point in time. In addition, it can be useful for those who prefer to rely on not only technical but also fundamental analysis in making trading decisions. In any case, before starting trading on a real account with trusted brokers , be sure to practice on a demo account , applying all the rules of money management and risk management in practice.
Download Currency Slope Strength
See Also:
- Books on trading
- Current bonuses and promo codes for BO
- Live chart for binary options online
- What Beginner Traders Need to Know About Binary Options
- How to make money on binary options
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