Our free currency strength meter is designed to give you a quick overview of the underlying movement of each individual currency in the market.
Instruments such as the US Dollar Index are weighted indexes which compare the Dollar's value relative to a basket of other currencies. Currency strength is calculated from the USDX , which is used as a reference for other currency indexes. Easy Currency Strength measures the relative strength of major currencies and display them on an easy to read dashboard interface. For instance, if a certain currency is very strong compared to another currency, this may indicate a good trading opportunity.
The deviation in strength between two currencies usually indicates momentum. Conversely, if a pair of currencies have similar strength, this is likely to mean a range or sideways movement is currently happening and thus it may not be a good time to trade the pair. This indicator helps traders see which trading pairs are the strongest and which are the weakest on different time scales.
The Currency Strength Indicator is fully configurable and designed to optimise trading success. With this information traders will have a great advantage on their operations. Most traders use the strength meter alongside an existing strategy as a way to trade in the same direction as the underlying strength of the markets. Conversely, if two currencies are weak, strong or average strength, there is often a range or sideways movement happening.
The basic idea behind indicators is "to buy strong currency and to sell weak currency". Our currency strength meter gives you a quick visual guide to which currencies are currently strong, and which ones are weak.