Currency strength indicator is the secret weapon of successful trading. In this trading guide, our team of industry experts will share our very own suite of currency strength indicators. You will find out why our internal indicator outperforms the strategy of trading non-standard currency strength.
Learning to use a currency strength meter can help forex traders execute their positions with greater accuracy. The value of any given currency pair (eg USD: GBP) will constantly fluctuate during any given trading period. By combining the right forex trading tools with a robust currency strength trading strategy, you can immediately improve your daily trading results.
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Looking at the chart to determine which currency is strong and which is weak can be confusing.
When you factor in intraday noise or multi-timeframe analysis, things can get even more complicated. Other variables such as geopolitics, alternative markets and economic reports can also lead to very rapid changes in the value of a given currency.
Looking at the 15 minute chart, it seems that the euro is the strongest against the US dollar. However, when you analyze the same currency pair on 1-hour and 4-hour charts, you get a new revelation. As we explain in this Currency Strength Trading Guide, the time frame you use as a trader can directly affect your trading results.
New data may show you a different story and the EUR / USD pair may be in a strong bearish trend.
In the forex market, these types of conflict analysis occur all the time.
Conflicting signals on different timeframes and in different currencies are the norm.
When forex charts do not clearly show the value of a currency, a currency strength indicator may be required.
Before we reveal our strategy for trading the strength of a currency, let's start by laying the groundwork.
