what is a way to find which currency overall is the weakest (which is weakest and strongest in weekly, daily, and hourly) and strongest? i want to trade the weakest currency against the strongest currency.
It’s not possible, you will come across rubbish that claim it will show you which are weaker and stronger, but it’s simply impossible, I mean strongest against what? All the currencies in the World?
… got a feather in ya cap this morning PPF, not even Sunday yet 
dunston2909, you could have a look at this idea here: Relative Strength Indicator
…be quick though before PPF has you put in the stocks for heinous thought crimes…
Corker, that makes me laugh.
But seriously, the RSI indicator only shows the currencies own Relative Strength, it’s just another moving average really.
There’s a section on Action Forex thats tells us the “Top Movers.” The CAD is in all the top movers top five pairs atm but negitively so I guess that would be you weak half of the pair?
Hi,
Well here’s something that will give you the information that you’re looking for:
Currency Relation | Deltastock
It shows you the percentage by which each currency has appreciated / depreciated against a base currency of your choice for a given period of your choice. How you would use that information to trade though I do not know i.e. if you look at a ten year period and a ten day period the results are (obviously) very different
There used to be (somewhere around here) a MT4 indicator that ‘ranked’ the majors against each other using some or the other method (if memory serves me correctly it was called the ‘Currency Strength Meter’ or something like that. I looked at it ONCE and couldn’t see the relevance although, again if memory serves me correctly, some people ‘swore’ by it for a time).
And WATCH what you say about RSI 
!!! If you KNOW how to use it CORRECTLY: trust me it’s one of only a VERY select few indicators that have ‘stood the test of time’. (Then of course: it depends WHAT you’re trading with it)!!!
Regards,
Dale.
That’s an interesting link thanks Dale.
So does it add up to creating an equivalent to the US dollar index if we select a similar “basket” of currencies to compare with our selected based currency?
Hi,
I never thought about it like that but yes, probably, you’d get the same information (just obviously for more currencies). It’s very interesting for statistical purposes anyway. I mean: who would have thought that the USD has strengthened the most against the Turkish Lira (TRY) and weakened the most against Swedish Krone (SEK) in the past year or that the USD has strengthened the most against the Romanian Ron (RON) and weakened the most against the Czech Koruna (CZK) in the past five years or that the USD has strengthened the most againt the Romanian Ron (RON) and weakend the most against the Swiss Franc (CHF) in the past ten years!!! I mean: if you look at it on that basis the ‘big picture’ changes somewhat e.g. the devalution of the USD against the CHF didn’t start around the time of the sub-prime crisis as would be easy to believe i.e. it started a LONG time ago!!! But as for using this for trading purposes well ‘there’s your problem’ i.e. which period do you ‘choose’ in order to ‘deem’ which currency is the ‘strongest’ against the USD and which currency is the ‘weakest’ against the USD (as an example) and is therefore likely to (hopefully) reverse and when??? That’s what most people seem to be saying to the thread starter i.e. it’s possibly (probably) not a ‘strategy’ in and of itself.
You can chart all of the above via Delta Trading (OBVIOUSLY) or you can use this link:
Interbank Spot Rates | Currency Rate | Spot Exchange Rate | Oz Forex
In both cases you can display ten years worth of data (in Delta Trading a lot more OF COURSE). The above link though is also ‘handy’ because it shows the LIVE Interbank Spot Rates 24/7 i.e. INCLUDING weekends (so it’s real handy if you’re carrying forex positions over a weekend i.e. you know as early as Sunday morning, whether to buy Champagne to ‘celebrate’ or ‘something stronger’ to ‘drown your sorrows’ at the open on Sunday night)!!! LOL!!! (Although that’s not strictly true i.e. when I USED to monitor such things I’ve seen rates change DRASTICALLY over a weekend e.g. between Sunday morning and Sunday afternoon so it’s no ‘guarantee’ that you’re going to open favourably or unfavourably on Sunday night).
It’s also a good ‘independant barometer’ to see how ‘off quotes’ your broker may or may not be from the REAL Interbank Spot Rate!!! (Fortunately I don’t have that problem i.e. nobody can ‘lie’ to me about the current price of the Dow i.e. there’s just too many external and independant ‘points of reference’)!!! LOL!!!
Regards,
Dale.
thanks alot for the links Dale. They were very helpful.