Forex Factory Best Currency Strength Meter

Forex factory best currency strength meter

Forex factory best currency strength meter

Introduction

The purpose of this website is to help Forex traders find the best Currency Strength Meter for their needs.

We’ve tested a huge number of currency strength products over the years. Unfortunately the quality of these products varies greatly.

Forex factory best currency strength meter

Finding the good products among the bad took a lot of trial and error.

Hopefully the information we provide here will save you time and help you make a better decision by sharing our own experiences and recommendations.

We’ve listed our “Top-4” favourite Currency Strength Meter’s on this website.

These are products we use for our own trading. You’ll find in-depth reviews of these products on this website, along with a detailed comparison chart.

We also have a section focusing on the important features of any currency strength indicator.

Forex factory best currency strength meter

This can act as a sort of checklist you can use when accessing any currency strength meter or indicator you may come across.

What is Currency Strength?

Analyzing the Forex market using a currency strength meter or indicator, has become a popular forex trading strategy.

Instead of focusing on forex pairs (e.g.

EURUSD, GBPUSD), currency strength focuses on the underlying currencies themselves (e.g. EUR, USD, GBP).

FREE FOREX CURRENCY POWER DASHBOARD

This infomation is invaluable because it directs the traders attention to the group of forex pairs “in play” at any given time. It works, because related forex pairs are correlated.

So, if the currency strength of the Euro is very strong, then there’ll likely be strong moves on Euro related Forex pairs i.e.

Forex factory best currency strength meter

EURUSD, EURJPY, EURGBP, EURCAD etc.

Currency strength is generally measured on a scale of 0 (weak) to 10 (strong).

The algorithm used to calculate currency strength is a little complicated. In simple terms the strength value is calculated by measuring the relative moves on a group of forex pairs associated with that currency.

The currency strength indicator time-frame defines the measurement interval.

So for the 4-hourly timeframe (H4), the currency strength will be based on the relative moves over the prior 4 hour period.

Currency strength data is displayed numerically or graphically on a bar or line chart.

Forex factory best currency strength meter