This is a simple currency strength meter which can be used to see currency strength or weakness—the way of using this tool is determining what is moving the market. Often when we see a currency pair moving, and being a pair, it is sometimes hard to determine which one is moving the market. When we see GBPUSD going up, we don’t know if it is a GBP strength or USD weakness. If USD is weak, then you should also see EURUSD going up… If GBP is strong, then you should also see EURGBP going down.
But having the strength meter will save you so much time, because you can just look at the strength and know what is going on. It can also be combined with other indicators for both technical and fundamental trading.
