Our site continuously monitors forex data and determines its strength. You can refresh the page to view any changes.
One aspect of the Forex (FX) market that differentiates it from other financial markets is the concept of currency pairs. When you take an FX position, you gain exposure to two different currencies. This creates many interesting opportunities, including the ability to measure one currency's strength against another.
Let's examine how this indicator works and how traders can use it to make informed trading decisions.
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There are many options for how you can use the currency strength indicator in your trading. They all depend on what your trading style is.
Calculate the swap rate for holding Forex positions overnight before you execute a trade with our free Forex Swap Rate Calculator.
The basic idea behind the strength meter is that it acts as a "filter" to help you make decisions. It is essential to know whether the US dollar is strengthening and weakening.
Measure the strength of major currencies relative to others in real-time and quickly and easily determine when a currency is moving strongly in one direction or another.
If you trade in the trend direction, choose the pair with the strongest or weakest currency to get the strongest trend. You can trade in a range of currencies by selecting currencies that have a slight strength difference.
Use our Forex compound calculator and simulate the profits you might earn on your Forex trading account.
Depending on the Forex trading style you choose, you might need to look at different time frames. For intraday traders, you will require more recent data. You will need monthly data if you are a long-term trader.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 81% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
You should also remember that the timeframes for a currency's strength are always important. EUR is an example of this. It can be solid in the current timeframe, but it is not the strongest on the monthly analysis.
Calculate your profits and losses before or after executing a trade with our free Forex Profit Calculator.