Forex currency trend meter

By: investagat Date of post: 05.06.2017

It works on all of the major currencies like the USD, CAD, EUR, CHF, GBP, JPY, AUD, and NZD. You cannot see what currencies are strong or weak when using typical indicators, which measure parameters for the entire pair, not the individual currencies.

The Fibonacci, RSI and stochastics are unreliable and do not measure strength. Indicators like this cause great confusion among forex traders. There are two types of currency strength indicators, real time and cyclical.

forex currency trend meter

A real time currency strength indicator is for current market conditions and a cyclical strength indicator is for the large picture or overall market analysis. There are some very complicated currency strength indicators and some of them are quite simple and effective currency strength indicators. It works best when trading in the direction of the trends but can also be used for short term day trading or short term trading against the trend.

Two currency strength trading strategies are possible. Understanding the condition of the total market across various individual currencies is one, and the second strategy is using currency strength for entering trades. You can determine which currencies are strong or weak in the overall market by looking at simple trend indicators on the larger time frames. For example if all of the JPY pairs are trending higher, you know the JPY is weak.

Anyone can perform this type of analysis, even beginner traders, in minutes or less.

Exponential moving averages like these shown below, applied to larger time frames like the D1 time frame or W1 time frame will work just fine. For example if the trend indicators above are applied to the JPY pairs and they are all trending up, it is obvious that the JPY is weak and you should be buying these pairs to make pips.

For managing your trade entries, you can also determine which currencies are strong and weak in real time using a simple currency strength indicator that anyone can read. See the example below. In this example it is clear that the NZD is weak.

Currency Strength Meter Indicator

This is not actually a strategy, just having the right indicators and using them correctly to make successful trade entries. Profitable forex trade entries are now possible with tools like this. Just match a strong currency with a real currency in real time and you have a potential entry.

forex currency trend meter

This is an easy to interpret data visualization tool for real time currency strength that organizes the information from 28 currency pairs into a visual map of the market for accurate trade entry decisions. When you know the current market condition, naturally your trade entries will improve. If you can match up an entry point with a pair that is trending you and safely enter the trends of the forex market and the trade will move into profitability in real time.

You then have a chance to ride the trends for several days or possibly weeks in a trending market.

forex currency trend meter

To round out your trading strategy and one more criteria. You can check support and resistance levels easily on any pair in just a couple of minutes.

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You will never know when not to trade or when conditions are favorable to trade with indicators. Another reason is that you will always know the condition of the overall market using currency strength, and you will not have to click on a bunch of charts for a real time analysis of the market.

Using currency strength and weakness keeps the emotions out of your trade decisions and emotions give way to using market logic to govern your trades. Currency strength trading is straightforward and any forex trader can learn it, even beginners.

To contact Mark Mc Donnell you can email him at Forexearlywarning. Home About Us Login Subscribe Blog Trading Tips Contact Us Education 35 Lessons Videos Webinars Sitemap. Currency Strength Indicator For 28 Pairs Posted on September 12, by Mark Mc Donnell. Currency Strength Versus Indicators You cannot see what currencies are strong or weak when using typical indicators, which measure parameters for the entire pair, not the individual currencies.

Excellent Currency Strength Indicator There are two types of currency strength indicators, real time and cyclical. Currency Strength Indicator JPY Weakness.

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