251 traders viewing ...

 


 

Period: 1 hours

CAD
 
JPY
 
CHF
 
USD
 
EUR
 
NZD
 
GBP
 
AUD
 

Period: 4 hours

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GBP
 
JPY
 
EUR
 
USD
 

Period: 1 days

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Period: 7 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 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.