Relative Strength of Currency Tools

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Relative Strength of Currency ToolsIt is critical for Day traders to know which currencies are strong and which one are weak when trading the Forex market.

This strength or weaknesses could be as result of short term demand and supply but can also be caused by economic announcement results.

Ideally one should always trade the strongest currency against the weakest currency.

 

 

 

 

 

Use the Forex Trading currency tools below to select a timeframe and currencies to view

https://www.mataf.net/en/forex/tools/currency-index

Relative strength of currencies

Other sources of relative strength of currency information

FX Street

FX Street provides heatmaps of currencies.

Use this link or click on the picture for more information: http://www.fxstreet.com/technical-studies/currencies/heat-map/

Forexstreetrelativestrength

When placing a trade in the Forex market one should realise that you are actually doing 2 transactions at the same time. Buying / selling one currency and selling / buying the other. Then when you exit you am always doing 2 transactions again selling / buying one currency and buying / selling the other. So when you sell the EURUSD for instance I am actually selling the EUR and buying the USD at the same time.

If you are looking for reasonable moves in the market then focus on the very strong currencies and on the weakest currencies. Always always try to BUY the stronger and SELL the weaker currencies. That way you get the economic fundamentals working in your favour and you know you are always trading with in the direction of a strong trend. The market is basically telling me the way it wants to be traded using this approach.

7 Comments

  • Allan J Smith

    Reply Reply November 21, 2015

    Hi just like to ask, is it possible to have a download of the

    Currency_Relative_Strength_index
    if so how would one access it please thank you
    Allan J Old Eyes

    • Alex du Plooy

      Reply Reply November 22, 2015

      This tool is only accessible on the website – load it into your favourites for easy access. There are MT4 relative strength indicators. Just Google for free ones.

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