In Detail

Currency Strength Meter

Desktop Edition

This is a standalone currency strength meter application, designed to run on either Windows or Mac OSX. It features fast, low latency data updates, accurate currency strength calculation, and extensive use of cloud server technologies that produce excellent performance and reliability.

So what is currency strength?

Currency strength is a popular indicator used by Forex traders to make sense of price moves in the Forex market. It takes advantage of the price correlation between various Forex pairs. Currency strength is measured for 8 currencies (USD, JPY, EUR, GBP, AUD, NZD, CHF, CAD) and is reported on a scale of 0 (weakest) to 10 (strongest).

Currency Strength Indicator showing NZD strength on Daily and 4-Hourly time-frames

How is it calculated?

Currency strength is calculated by performing real-time calculations on a large group of Forex pairs. It involves the measurement of relative price moves over various sampling time-windows using our proprietary currency strength algorithm. All this heavy number crunching is done by our cloud servers in real-time, and then delivered to your screen with very low latency.

How can currency strength be used for trading?

Typically a trader would look for extreme strength or weakness on a particular currency, and then focus their attention on trade setups involving related Forex pairs.

Currency strength can also be used to quickly identify the cause of a large move on a Forex pair. For example, if GBP/USD is trending upwards following an economic news announcement (e.g. US Non-Farm Payroll), the currency strength meter would immediately indicate whether the move was due to generalized GBP strength or USD weakness. If it was due to USD weakness, then you’d look for trade opportunities on other USD Forex pairs.

Currency Strength Charting

The currency strength meter has 2 types of charts – line-charts and bar-charts.

Line Charts

Currency strength line charts look pretty much like a normal Forex line-chart except that the vertical axis is currency strength rather than price. This type of chart is used to identify currency strength trends. A chart can display up to 8 different currency strength’s at once, and the time-frame measurement interval is selectable. You can open as many charts as you want, resize them, scroll and zoom, just like any normal Forex chart.

Currency strength meter line chart

Bar Charts

Bar charts display real-time currency strength values. This type of chart is best suited for monitoring tick-by-tick changes in currency strength. The strongest and weakest currencies at any given moment are highlighted.

Currency strength meter bar charts

Typically a Forex trader will use both line-charts and bar-charts at the same time, with line-charts used to show trends, and bar-charts giving a better visual indication of moment-by-moment currency strength fluctuations.

Currency Strength Data-Table

This table displays real-time currency strength values across all currencies and time-frames. Data is organised in a grid format with a column for each currency and a row for each time-frame. The strongest and weakest currency strength values for each time-frame are highlighted.

Currency strength indicator data table

So with a just a quick glance a trader can tell which currencies are in play. For example, if AUD is weak across all time-frames, then there’s probably a broad-based AUD selloff underway.

Currency Strength Alerts

Currency strength alerts can be set for any currency and time-frame. Alerts are typically set to detect significant currency strength (i.e. > 8) or weakness (i.e. < 2) for a particular currency.

Currency Strength Meter alerts editor

These alerts are server-side. That means you can still receive an email alert notification even if your platform is not running. Your pending alerts will be continually monitored by our server, and a message sent once the trigger condition is met.

Designed for Multi-Monitor Setups

Most Forex traders use multiple monitors, and screen space is at a premium. So we designed the application with that in mind, by using a floating multi-window design that allows charts to be independently sized and positioned on any screen.

Highly Customizable

Most traders will find that the default settings don’t need to be adjusted apart from maybe the chart time-zone, or alert tone.

Currency strength meter color settings

But we’ve provided lots of settings anyway just in case you have a specific need e.g colors, fonts, alert messages, date formats, chart settings etc.

Lots more…

There’s many more features that you’ll discover when you use it. But we’ve covered the main one’s here. Feel free to contact us if you have any specific questions.