This makes scalp or day trading possible around the clock. Imagine you could know which currency is moving the strongest at the moment? Now what if you could also know the weakest currency at the same time? When it comes to trading currencies, the only objective we have is to pair a currency that is losing value with a currency that is gaining value in order to create a match up that moves in a given direction. Buy strongest currencies against weakest currencies long momentum trades.

Sell weakest currencies against strongest currencies short momentum trades. Sell strongest currencies against weakest currencies fading strong momentum, otherwise known as reversal trading, not advised for new traders. Buy weakest currencies against strongest currencies reversing weak momentum, otherwise known as reversal trading, not advised for new traders.

These days the global currency markets are interconnected, and you should be following the relative momentum using a Currency Strength Meter. It is, in short, an indispensable tool in trading, as it will show you an at-a-glance view of the current market conditions, allowing you to make timely decisions while taking advantage of strong current market trends….

If you are a momentum trader, this MT4 Currency Strength Meter is gold for you. Faders and scalpers will also find value in this tool on the lower time frames. not for me then, and not for me now:. This is a CSM that is actually a correlation matrix chart…again, not so great at seeing at-a-glance what pairs to go look at:. The color code used in the meter is pretty self-explanatory:. BLUE is very weak 0. In the picture above, the GBP is a weak yellow at 2.

Also the AudUsd pair is being sold because the AUD is a very weak blue 1. We sell the weaker currency AUD and buy the stronger currency USD , but as a pair….

so the CSM helps us see this. It just takes some practice in a demo account. You can use the individual CSM indicator on any trading system that you currently favor. OR you can buy my Basic or Pro template that has some of my favorite indicators that I use. You can see that the USD is a strong red at 7. If you look at the CSM, the USD is a very weak blue 1. At the last candle, you can see the the GbpUsd trend is still up after 9 hours and has hit the top of the fibonacci red overbought zone, after pushing past the fibonacci pivot line and fib resistance levels 1, 2, and 3.

Buy the stronger currency AND Sell the weaker currency, as a pair. Sell the weaker currency and Buy the stronger currency, as a pair. On the GbpNzd M15 chart above, you can see how the very strong red GBP 8. Buy the stronger currency, Sell the weaker currency, as a pair. The CSM works with tick data and changes all the time, it may not be very accurate in backtests, but if you just want to see where the market is at in any given point of time, it gives a clear immediate picture.

Of course, one word of warning, as with everything Forex, there is no absolute. These methods have shown to work in the past, and it is relatively reasonable to expect them to work in the future, but of course, there is no guarantee…. Even if sometimes all conditions are right, these methods may not work due to other factors, such as unscheduled or even scheduled news releases, market sentiments, order flows, etc… that are beyond the scope of these methods, so always use caution and most of all, common sense, when using the CSM.

To keep abreast of red economic news events that can drastically affect the readings of the CSM values, please always watch the Forex Factory Calendar:. Use the filter to set up the calendar for your timezone and filter only the red news events. You can watch the CSM before a red news event and then see the changes in values after the red news event…look at the higher time frames to see if the major trend is the same or has changed…trade the pullbacks using the CSM and your indicators to time your entry after the pullback is over.

The key regarding the Currency Strength Meter is making sure that you combine the individual strength with other components because, of course, strengths are always fluctuating.

I suggest using things like RSI, MACD, trend lines, channels, fibonacci retracements, support and resistance zones, divergence, etc. Once you see a pair to go look at, refine your entry by using other indicators as mentioned. I use the CSM to trade any of my own color coded trading systems, each with unique indicators…but in my training videos I use my Neon Breakout system. Using the CSM only takes as little as 3 minutes a day to plan your trades.

Every forex trader needs to learn how to use a Currency Strength Meter… I make it easy! PLEASE WATCH A VIDEO WHICH COMPARES THE BASIC CSM TEMPLATE WITH THE PRO CSM TEMPLATE :. THIS IS THE BEST DEAL FOR YOU! You can use the CSM template as a stand-alone trading system, OR, you can use the CSM indicator without the template, with any other trading system that you like. If you are interested in trading with any of my other color coded MT4 trading systems, please visit my main website:.

If you have questions or need support, you can reach Cynthia here:. remove the spaces. Trading From the Beaches of Mexico…. You can too! NFA Required Disclaimer: Forex trading may not be suitable for all customers. This is the daily chart, which means that each candlestick covers one trading day and includes the open, high, low, and close prices of that day. Read: History of the Forex Market. Simply said, a weak currency is a currency that falls in value against all or most currencies.

In fact, a bullish candlestick can also signal that both currencies are weak, with the counter-currency being weaker for some reason. The net effect would be a rise in the chart, i.

a bullish candlestick. A currency that rises against most or all other currencies can be considered strong. Why is it important to know which currencies are strong and weak?

Currencies like to trend, just like other financial instruments. A strong currency today might continue to rise tomorrow, and a weak currency today might continue to fall tomorrow. If we could match a strong currency with a weak currency, we could build a complete trading strategy around this approach.

Imagine that, for some reason, the British pound is rising against all other major currencies. At the same time, the Australian dollar is falling against all other currencies. If a currency rises against five or six of the remaining seven major currencies, it can still be considered a strong currency. Similarly, if a currency falls against five or six other major currencies, it can still be considered a weak currency.

You can still match these currencies in a trade with a relatively high success rate. Read: 15 Must Know Terms: Forex Trading Terminology. When using a Forex currency strength index, currencies are evaluated by both their closing price and the highest price reached during the session. We can also determine two levels of bearishness in a currency pair. The main reasons are fundamental. Important market reports that miss market expectations either to the upside or downside can impact the market sentiment and put increased buying or selling pressure on the currency.

The other reasons include technical levels. However, most of the time the reasons for strong up- and down-moves are fundamental. A currency strength list or heatmap shows the performance of currencies in a graphical way.

Currency strength lists include the strongest currencies in the top of the list and, as the list goes down, currencies become gradually weaker. The last currency in a currency strength list is the weakest currency for the selected time period. While lists can be handy at times, currency heatmaps offer a more user-friendly experience. Heatmaps use colours to emphasise which currencies are strong or weak against other major currencies.

When reading a heatmap, pay attention to the currencies in the first column, from the top to the bottom. In other words, the US dollar is falling against both the euro and the Japanese yen, with the fall against the latter being quite strong. Simply said, if all columns are dark red, the currency is extremely weak.

If all columns are dark green, the currency is extremely strong. A mix of green and red fields signals normal market fluctuation. The heatmap above shows that the Japanese yen is extremely strong, the euro is quite strong, the Australian dollar is quite weak and the New Zealand dollar is extremely weak.

A heatmap-based trading strategy would include buying the yen and the euro and matching them with weak currencies such as the Australian dollar and New Zealand dollar shorting them. Bear in mind that this is the daily heatmap, which means that all data is related to daily candlesticks open, high, low, close. Read: How to locate Markets on Your Brokers Platform. Heatmaps also offer an insight into the current risk sentiment of the market. Similarly, if safe-havens are falling and risk currencies are rising, this means that market participants have an increased appetite for risk for whatever reason.

Check out: Top 15 Twitter Trading Profiles You Must Follow. In any case, improved risk appetite may persist and a trader could enter into risk currencies and short safe-havens, for example.

There are heatmaps for all major timeframes. At Investing. The reason for this lies in the way how heatmaps use data to compute their fields. For instance, a currency might be strong on the daily chart, but there could be a small pullback on shorter-term charts which are reflected by dark red and light red fields.

To avoid confusion, you should follow a single timeframe which aligns with your trading style. Longer-term traders may find the daily heatmaps more useful. There are many free currency strength meters available for free on the internet, but I personally prefer Investing.

It loads fast, has multiple timeframes and is very easy to read and understand. Although currency heatmaps are often neglected by both beginners and experienced traders, they offer valuable insight into the performance of currencies relative to each other. Forex traders aim to buy a currency that goes up in value and sell a currency that goes down in value. Think about the underlying reasons why certain currencies are extremely strong or weak: Important news is gradually discounted by the price.

A currency heatmap can help you spot those changes. So, you want to become a day trader and join the hundreds of thousands of day traders who are living in the UK? Then this…. They allow traders to perform technical analysis and predict future price-movements by analysing past…. Charts are not necessary to place trades or even make a sound trading…. Support and resistance levels are a powerful concept in technical analysis. Many technical tools have been developed to take advantage of support and resistance levels….

As you gain more knowledge of the forex market to increase your earning potentials, there are several tools you could deploy to help you achieve your goals faster than you expect.

One of such tools is the Forex Strength Meter. With different currency pairs on the market, most newbies usually struggle with choosing a currency pair they would make the most profit from. A Strength Meter helps newbies traders to measure the weakness and strength of each currency in a currency pair using mathematical calculations.

It supports both MT4 and MT5 trading terminals. This post will explain what the Forex Strength Meter is all about. And the benefits of using it, how it works, as well as, issues with the tool.

Strength Meter is not the usual technical indicator but a tool that is designed to help forex traders measure the strength and weakness of different currencies in currency pairs. The Strength meter shows the percentage change in prices of different currencies against each other. For instance, if we want to measure the strength of the United States dollar USD , the strength meter will sum the strength of all the currency pairs containing the USD e. AUDUSD, GBPUSD, EURUSD, USDJPY, etc.

The results of the calculation would then be used to measure the overall strength of the USD. This meter supports both the MT4 and MT5 trading terminals. The meter is highly promising, as it is capable of not just enhancing your trading strategies, but it can jump-start your earning potentials in the shortest possible time. If you search online you cand find easily a premium live currency strength meter.

There are numerous benefits of using the Strength Meter to trade the FX market. From the ease of use, eliminating unnecessary hedging to its usefulness as a short-term indicator.

And the ability to signal high-risk trades, the benefits are just so evident. So many veteran traders use this tool as a quick guide to determine the currencies that have the potential to rise.

So, if you need a tool that would propel you to make a quick decision, the Forex Strength Meter is what you need. It is very simple and straightforward to understand. Most traders struggle with the problem of second-guessing and trading with emotions. Another major benefit using the Forex Strength Indicator is that it is readily available for free on several marketplaces.

The Strength Meter can help you avoid unintentional hedging. This is what this tool will help you to achieve. The Strength Meter works perfectly well with technical indicators like the Breakout indicator, Gap indicator, MACD indicator, as well as the resistance and support indicators, among others.

As a forex trader, knowing the accurate time to enter or exit a trade position is what you need to succeed. By now, you already know that the major job of the Strength Meter is to measure the strength or weakness of different currencies in currency pairs. The results of the meter would give you the leverage to choose a currency pair with the highest breakout potential and dump those with low-profit potentials. Here is what we mean — strong currencies tend to move stronger while weak currencies become weaker.

With that in mind, a Strength Meter will push you to make an informed decision by trading only strong currencies. Generally, if this tool shows one currency to be very strong and the other to be very weak, the best you can do would be to opt for the strong currency. Similarly, if the Strength Meter shows both currencies to be either weak or strong, it is best to stay away from trading those currencies.

The Currency Strength Meter has some issues that could impede its performance and efficiency. Some of these issues are:. Memory leakage 2. Stutters 3. PC freezes 4. Whipsaw signals 5. MT4 or MT5 trading terminals freeze. So far, this article has informed you that: 1 a Forex Strength Meter can be used for testing the strength or weakness of a currency in a currency pair before you carry out a trade.

Like we have always emphasized, avoid using any technical tool in isolation. At best, you can combine the strength meter with at least a forex indicator to further guarantee your profitability. While the exciting part for everyone is that we have a long list of forex indicators here on our best forex indicator website for you skim through.

Home Best Metatrader Indicators Best Tested Forex System Forex Tips Contact BEST TESTED FOREX INDICATOR September 3, Table of Contents. Ready to get your Winning Forex Indicator? MORE INFO.

Offer valid for New Customers only. Currency Strength Meter Forex Strength Meter - Desktop Version - QM4 Designs. Like in a 1-hour timeframe, you get that GBP is weak, but when you switch to a 4-hour timeframe, surprisingly, you will find that indicator shows that GBP is super strong. As you gain more knowledge of the forex market to increase your earning potentials, there are several tools you could deploy to help you achieve your goals faster than you expect. Why Should I Use The Live Currency Strength Meter? Another major benefit using the Forex Strength Indicator is that it is readily available for free on several marketplaces.

Categories:

• Binary Options
• Forex Bitcoin
• Forex Brokers
• Forex
• Binary Options online