Hello pals…what do the 1day trend matrix tool on babypips signifies… any ideas please?
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No my love im sorry but I do wish it would stop showing me the tabs everything I click on it
The trend matrix shows the strength of the current trend by visualizing where the current price is relative to the specific moving averages.
For example, in the chart below, USD/JPY is ~3% above its 50 SMA and ~12% above its 200 SMA. The further above (or below) the current price is from a moving average, the more bullish (or bearish) the trend.
The matrix shows multiple currency pairs so you can easily compare trend strength between the different pairs without having to flip through charts.
If you want though, you can confirm by looking at the charts. Here’s USD/JPY. See how far the price is from the 50 SMA (purple) and the 200 SMA (blue).
Instead of having to look at chart to see which currency pairs are trading above (or below) their moving averages, you can just use the trend matrix.