Currency Strength:strong against weak.
A currency strength meter compares the major currencies against each other and shows which is strongest and which is weakest right now. Pair the strongest against the weakest, and you usually find the cleanest move of the day.
In Prime Terminal, Currency Strength sits next to the bias, so you can check whether the strength has a reason behind it.
What it shows
Every major currency on 1 scale, from strongest to weakest, with the change over your chosen period.
How to read it
Look at the gap. A currency at +1.4 against one at −1.2 is a much cleaner pair than 2 currencies close to zero. Then check the macro story: does the Macro Briefing explain the strength? Strength without a reason fades quickly.
Use it in real trading
The tool informs the decision, it never makes it. Here is how it plays out on real trading days.
USD is strongest and AUD weakest, and the briefing explains both. AUDUSD short is your cleanest idea today.
Everything sits close to zero before a big release. The meter tells you to wait.
Mistakes to avoid
- Trading 2 currencies that are both strong.
- Chasing strength after the move is done.
- Ignoring the reason behind the strength.
What makes it different
Strength alone is a number. Next to the bias, the briefing and positioning it becomes a reason.
Questions
Which currencies are included?
The major currencies: USD, EUR, JPY, GBP, CHF, CAD, AUD and NZD.
Which timeframe should I use?
Daily for swing trading, intraday for day trading.
Is strength a trading signal?
No, it is a filter to find the clearest pair.