(Relative) Currency Stregth

Trading Discussion
1

Hello fellow pipsters,

I have dabbled in using Correlation and relative currency stregth to confirm technical signals. E.g. if I want to buy eur/usd I want to see usd weakening accross the board (not just eur/usd).

I have found this website that helps: Currency Strength Meter | FXMRI™
But I cannot test how accurate it is. Do you have any suggestions?

A graph of relative stregth of a currency accross the entire market is what I need. Can you provide me with some assistance, please. I am feeling lost- have checked multiple providers and they all display different numbers for the same period! Can you recommend one you have tried and tested, yourselves (as you have much more experience and expertise than me)

Thank you for your time.

Kind Regards,

Zhelyazko

2

Nobody willing to share some power? I give u candy?

3

Hi,
You’re probably not getting any response because practically nobody here is using such an indicator except me, but I made & use my own indicator which is based on criteria which is probably very different from the link you provided. Just as there are many types of oscillator indicators (MacD, Stochs, RSI etc) each using different criteria , so do currency strength meter type indicators, so yes you will get different numbers for the same period.

All you can do is try them for yourself and track the results…do the work!

:wink:

4

Thank you for the reply.

Yes. Of course, I am not trying to find an easy way out. I do not mean oscillators- I need a simple weighted average of currency movements accross all the pairs they comprise => therefore INDIVIDUAL currency stregth/weakness; not the pair as a whole. Do you have any expertise on that, perhaps.

edit: Okay. I understood what you meant. But it does not hurt to ask. One must learn from those smarter than him in order to grow, yeah?

5

Well one must ask from those who already know…I wouldn’t necessarily equate that to being “smarter”…lol. :wink:

I found this article that you might find helpful too…

How to Create a “Trading Edge”: Know the Strong and the Weak Currencies | DailyFX

I made my indicator based on his criteria but I’m still trying it out myself since around February, so I don’t have much expertise built up yet.

:slight_smile:

6

i doubt you’ll find precisely what you’re looking for. the dollar (or euro, or pound, or yen) isn’t worth anything in and of itself - it’s only worth based on what it can buy, be it another currency, a barrel of oil, or three cheeseburgers a small fry and a diet coke (cuz the “diet” coke is the one to get in that combo, the plain coke is unhealthy, too many calories)

for example, the us dollar is worth one us dollar (duh!), but it’s also worth 3/4ths of a euro, and it’s worth one fourth of a cheeseburger. it’s all always relative, so you’ll have to measure the dollar (or euro) against other things.

or you can just look at the USDX (us dollar index), or something similar for the euro / pound / yen / etc.

7

Ok. Thanks for the link. Will check.

8

Diet Coke is too healthy! :smiley:

The USDX is a good start. Will look for related indexes (plural?).

9

Currency Strength | Currency Weakness | Forex Heatmap | OANDA fxTrade