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. Forex trading involves a substantial risk of loss. Simulated conditions may differ from real conditions and traders should not necessarily expect the same results from live trading.

Trading is risky and is not suitable for everyone. Only risk capital should be used. You are responsible for your results and agree to hold everyone else harmless if you lose.

You agree to hold harmless all principles, affiliates, and associates from any trading losses or any other harm due to trading. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this website. The past performance of any trading system or methodology is not necessarily indicative of future results. Currency Strength Meter Traders can use currency strength to predict currency movements when making decisions for the best trading opportunities.

You have real-time data for the current market, and you can decide which currency is under or overvalued. This is an excellent additional signal or filter in Forex technical analysis. The Currency Strength Meter is a technical indicator that determines the relative strength of currencies.

It exists for MT4, MT5, and other trading platforms. Also can be found online at sites like this one. Realtime exchange rates are used to measure the aggregate, comparable strength. Simple meters may not use weighted calculations, while more advanced, like this one, use their weighting factors.

In addition, our calculation method shows the direction of the change pointed with arrow close to the name of the currency. The algorithm looks at the previous 24 hours to calculate overall strength and combines all currency pairs associated with a currency. Usually, the data obtained as a result of calculations are displayed as a chart. Those who don't know what currency meters do - they measure main currencies' strengths in the Forex market USD, GBP, EUR, CHF, JPY, CAD, NZD, and AUD by comparing all 28 crosses between them.

It's a quick way for Forex traders to see whether market conditions positively or negatively affect their positions.

Let's look at how this technical indicator works and how it can help traders make informed trading decisions. The basic idea of the strength meter is to think of it as a "filter" in decisions. It allows us to determine, for example, whether the US dollar is strengthening or weakening, which is always essential to know. Another thing to note is that a particular currency's strength is always determined by the timeframes you set for it.

For example, EUR can be solid for today's timeframe, but it is one of the weakest on the list in monthly analysis. Depending on your Forex trading style, you may need to look at other time frames. If you are an intraday trader, you need more recent data. If you are a long-term trader, you need monthly values. Our site checks forex data every minute in real-time and determines the strength. Any changes will be displayed when you refresh the page.

Our currency strength meter gives you a quick visual guide to which currencies are currently strong, and which ones are weak. The meter measures the strength of all forex cross pairs and applies calculations on them to determine the overall strength for each individual currency. Please see notes below for further details. The meter takes readings from every forex pair over the last 24 hours, and applies calculations to each. It is useful as a quick guide to which currencies you might want to trade, and which might be worth staying away from.

For instance, if a certain currency is very strong, and another suddenly turns weaker, you may find a trading opportunity. Such deviation between pairs usually indicates momentum. Conversely, if two currencies are weak, strong or average strength, there is often a range or sideways movement happening. You might want to stay away from trading those pairs.

It checks our real time forex data every minute and determines the current strength. Any changes will appear if you refresh the page.

Sure, let me show you a couple taken right now. Go to this page and see our examples ». This is different to a currency index.

Instruments such as the US Dollar Index are weighted indexes which compare the Dollar's value relative to a basket of other currencies.

For instance, at the time of writing this the US Dollar index is weighted as follows: Euro Our meter is based on more pairs, and takes the average gain or loss over a couple of timeframes to give an overall strength.

It doesn't calculate a price like an index does, it gauges the strength on a numerical scale. Copyright © Live Charts UK. All rights reserved. Designed inhouse by Live Charts Special Thanks to Forex Rate Site Map. Trading Info Centre. Members area Currency Strength Meter Dow jones Crude oil Spread betting Daytrading Forex Advertise! Login to message board. uk Currency Strength Meter Our currency strength meter gives you a quick visual guide to which currencies are currently strong, and which ones are weak.

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Cynthia Trading From the Beaches of Mexico…. Create your own Currency Strength Meter and compare the relative strength of your chosen currency pairs. Never trade alone again. Such deviation between pairs usually indicates momentum. The moving average type could be a simple, exponential, volume weighted, displaced, etc. You agree to hold harmless all principles, affiliates, and associates from any trading losses or any other harm due to trading.

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