FX:EURUSD   Euro Fx/U.S. Dollar
155 3 6
Daily currency strength shows you a graphic picture of what currencies are strong and what currencies are weak on a daily basis.
As for example, today pre Asia opening AUD is +3 while EUR is -5, meaning that the order flow on euro/aud is negative.
The scale range from -7 to +7 and the strength is determined by either two moving averages 12 and 5, or the 8 ema (also known as the trigger line).
The double ma captures the overall trend direction in a more slow phase while the 8 ema captures the slightest change in trend direction and are more alert but also comes with more "choppiness". To find out more on how to actually determine the daily currency strength, click HERE.
In the .pdf file the 8 EMA is used, but the same principals apply for the double 12,5 MA approach.
Comment: Also, something i have left out is that it is important to do the analyse one the daily CLOSE, not later and not earlier. Because a running candle/bar/line etc means nothing until it closes.

If you want to determine the WEEKLY currency strength, the same method applies, but once a week obviously. Over the weekend is a good time to determine the weekly currency strength.
Love this! The very basis for trading Fx pairs, simple and powerful.
+1 Reply
Carl_G coondawg71
so true. Analysing the strength/order flow of each currency then combining the strongest against the weakest currencies increases the odds of a successful trade massively. To simply identify what currencies are strong and what currencies are weak..or in other identify what currencies are outperforming the other currencies, combined with supply and demand is such a straight forward, very logical, easy to apply and understand method of trading!
+1 Reply
Yep! No doubt. I do exactly that myself.
+1 Reply
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