This is a typical currency strength measurement tool based on price action of the candle. This is not an expert advisor, simply a visual display to help you pick the best currency pairs to trade.
The currency strength is measured based on the time frame that it is placed on.
For best results use the daily chart.
There are no settings required to use this tool.
- A strong currency is indicated with a GREEN color above 6.6.
- A weak currency is indicated with a RED color below 2.5.
- Currencies that are YELLOW or ORANGE are not trending.
If all currencies are YELLOW or ORANGE then I suggest you wait for a better time to trade. In fact this is great signal if you time it right. As soon as one of the currencies breaks out into a STRONG or WEAK indication then there is an opportunity to grab some nice pips.
Always trade a pair that is WEAK/STRONG or vice versa.
For example, if AUD is 7.0 and USD is 2.0 then you should look for BUY position on AUDUSD.
Another, if EUR is 3.5, USD is 4.0, GBP is 5.0, JPY is 4.0, CHF is 3.0, CAD is 4.5, NZD is 4.5 and AUD is 3.0 - then the market is not moving, most likely waiting for a news release. When one of the currencies breaks above 6.5 or below 2.5 the you enter a trade.
This is my favorite indicator for picking the right pair.