I’m new to forex trading and have come across something. Called a forex heat map.
I understand the basics of it but I was wondering how it is used by people to trade?
For example, the EUR is stronger than the USD according to this map, does that mean I should be looking for buying opportunities for the EUR/USD?
Well in general yes. But IMO you should not be looking at just one pair or one timeframe when using the tool because you might overlook the whole picture. I mean if you look at other pairs you might find that EUR is actually falling (just theoretically) against other currencies and buying EURUSD might be wrong. You should also be aware of the direction of the primary trend of the currency you consider to trade. Not that a pair cannot move against the trend lol
The point is not to jump to easy into buy/sell by just seeing a green light 