How useful is a CSM while trading forex and how often do you use it?
I work out my own , but it is very good as a filter so I use a CSM everyday
I find CSM to be a great filter. Do you know of any reliable CSM?
currency heatwave is pretty good
I am using curreency strenth meter(CSM) and it guides me which currencies I might want to trade, and which might be worth staying away from.
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Looking at specific currency groups is a better way to analyze currency strength imo.
You can do this in MarketMilk.
The easiest way to do this is to first look at the major pairs since USD sets the tone for the FX market.
You can see the watchlist of the Majors here:
The “Change Comparison” shows price strength.
You can normalize the base currencies by switching it from “Standard” to “Normalize”.
From there, you can see what the weakest currency against the USD is.
Let’s say it’s GBP.
Now all you have to do is switch the watchlist to “GBP Pairs”
From there, you can find the weakest GBP pair.
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It’s lagging indicator it helps you to interpret “left side” of the chart (what’s happened) but has no stable predictive power. If it had predictive power some guys with fast trading platforms would compete to trade this opportunity (faster and faster) till the point when the “hint” from CSM is “priced in” almost instantly.
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Why! Is it slow? Does the decisions are true that gives you
Thread after Thread, after Thread, after Thread, after Thread, after Thread, after Thread…
https://forums.babypips.com/search?q=Currency%20Strength%20Meter
Just do a search… 12 comprehensive threads on CSM’s and their application.
The advantage of CSM is that it gives you a visual representation of the strongest/weakest currency pair at any given point thereby saving you the time of having to scan through all the pairs trying to decide which is weakest/strongest. It can help as a trigger to enter or exit a trade.
I completely agree! Can you advise a reliable app for CSM?
I admit currency strenght meter is useful, but still not a holy grail (none indicator is).
its an interesting point i look at finviz site for forex its {FREE] the performance highlighted changes constantly through the day.and all currencies are relative to us dollar. im not sure how to incorporate the information into strategy .i know traders have mentioned trade the strongest against the weakest but id be weary of this system alone.
lol i take your point just looked
@Trendswithbenefits mentioned a good one on another thread called ‘Forex Power Indicator’ its pretty descent, it shows S/W analasis over different timeframes and pairs the top 5 together for you. There are a few threads about the subject over in Trading Discussion/Journals.
CSM allows you to detect several changes and dynamics in price that many traders can’t estimate or see without an indicator, which highlights its essence and usage.