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Currency Strength Meter
Dear fellow Forex trader,
Currency Strength Meter
is provided by
BEST FOREX EA’S | EXPERT ADVISORS | FX ROBOTS
as an ultimate research tool for all other FX traders.
The Currency Strength Meter offers a view of the general trends on the currency market. It tracks the performance of each of the chosen currencies against a basket of its most liquid pairs by aggregating the moves of its exchange rates into easy-to-understand Forex indexes. Thus each index represents a string of average changes of the rates compared to the closing prices for a fixed base date. These changes, or returns, are expressed in percentages, with the values of the index on the base day set to 100%. Consequently, a value below 100% implies a decrease relative to the base date, and a value above 100% shows a rise.
The currencies available in the widget are the Euro (EUR), the Pound (GBP), the Swiss Franc (CHF), the US Dollar (USD), and the Yen (JPY). The pairs used in calculations of a specific index always contain the corresponding currency as the base currency, even if the standard notation has it listed second. Thus an increase in the index always points to the strengthening of the currency against its peers, while a decrease indicates a weakening.
The widget allows to set the desired base date, and indicate the period of time that will be displayed on the chart by choosing the start date, which is the date of the first shown value, and the number of days to follow it.
Currency Strength Meter
What is the secret to making a lot of money in forex?
- First it is to identify the currency that has the biggest chance to appreciate.
- Second it is to identify the currency that has the biggest chance to depreciate.
- Third is to match those two currencies.
First problem – Did the US Dollar appreciate or depreciate this year? Most likely we wouldn’t be able to answer that question, because it could’ve appreciated against Euro and Japanese Yen, but it could’ve depreciated against British Pound.
Second problem – If we already know the past by having data for last term, and we still can’t say which forex currency was the strongest and which forex currency was the weakest, then how in the world can we even try to predict the future that has no data yet?
Solution – This simple currency strenght meter can’t predict the future but at least it can help us visualise the past. The grey horizontal bar (or 100 level) represents the neutral position. Majors above this level are appreciating and vise versa currencies below are the depreciating ones.
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To your trading success,
Michael Sommer
BEST FOREX EA’S | EXPERT ADVISORS | FX ROBOTS
