102 traders viewing ...

 


 

Period: 1 hours

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Period: 4 hours

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Period: 1 days

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Period: 7 days

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Period: 30 days

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01

How are the currency strengths calculated?

Currency Strengths are calculated by finding and summing up differences between price values (in points) at approximately every 15 min intervals. For example, if EURUSD has moved up by 2 PIPs (20 points) in last 15 min, it counts as +15 points for EUR and -15 points for USD. In this fashion, strength values in points are calculated for all 28 pairs made up of 8 majors. Sum of these values over given timeframe (1 hr, 4 hr, 1 day, 1 week, 1 month etc.) is the strength of that currency.

02

How are currency strength values useful to traders?

Currency strength values by themselves are not really useful to the traders. It is the relative currency value difference that helps. For example, the meter shows you which currency is stronger (has higher strength value) as compared to which other currency that may have lower value. This gives traders indication as to what potential movement to expect in that currency pair. Usually, a trader can take one good look at the currency strengths meter and get an overview of where the currencies are trending. This can help the trading decisions in many ways.

 

 

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.