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Current signal: Buy JPY Sell AUD

Updated matrix is available every 15 min (when the markets are open).

 

Sym 1 Hr rank 4 Hr rank 1 Day rank 1 Week rank 1 Month rank Total weighted score
JPY 1 1 1 1 1 15
USD 2 5 4 4 2 50
CAD 3 8 5 6 5 83
CHF 4 3 3 3 3 46
NZD 5 6 7 7 7 101
EUR 6 2 2 2 4 44
GBP 7 4 6 5 6 83
AUD 8 7 8 8 8 118

01

How is this matrix calculated?

Currency Strengths Matrix is calculated by plotting rank of each currency based on it's strength across all five timeframes - 1 hr, 4 hr, 1 day, 1 week and 1 month. For example - if EUR is the strongest currency for 1 hr period then it's rank for 1 hr period is 1. Similarly if USD is the weakest for 1 hr period, it's rank is 8 and son on. Since there are 8 majors, there are 8 rows for each time period listing 1 to 8 rank for each currency. Same rankings are calculated for other four periods and plotted in a table as shown above. Sum of the ranks across all 5 timeframes consitutes the overall rank of that currency. Keep in mind that the ranks are added in weighted manner. 1 month rank has the highest rank and 1 hr has the lowest. This is done to get more stable and robust indication as shorter timeframe currency strengths are more volatile as compared to longer timeframes.

02

How is this matrix useful to traders?

Any forex trader can check this matrix to get a quick overview of where each currency lies in terms of it's strength across the five timeframes. Currency with lowest rank is the one that has highest probability of trending upwards in near future and vice-versa. This can provide a good guidance for short-term where the currency pair can be quickly identified for trading. Traders can then do more research and analysis and make the trading decision. We also provide a signal at the top of the currency matrix table. This signal is our prediction of what makes most sense given the currency strengths and their weighted matrix scores. This is only meant to be guidance. Users are requested to do their own thorough testing before putting this signal to use.

 

 

Risk warning: Before deciding to participate in the Forex market, you should carefully consider your investment objectives, level of experience and risk appetite. Most importantly, do not invest money you cannot afford to lose. There is considerable exposure to risk in any off-exchange foreign exchange transaction, including, but not limited to, leverage, creditworthiness, limited regulatory protection and market volatility that may substantially affect the price, or liquidity of a currency or currency pair. More over, the leveraged nature of forex trading means that any market movement will have an equally proportional effect on your deposited funds. This may work against you as well as for you. The possibility exists that you could sustain a total loss of initial margin funds and be required to deposit additional funds to maintain your position. If you fail to meet any margin requirement, your position may be liquidated and you will be responsible for any resulting losses.