Having a forex currency strength indicator would be an important part of any accurate trade entry system. Forex traders need accurate tools for entering trades. If you combine accurate tools for trade entry with setting and moving stops you are close to creating a profitable trading system.
Look at the example forex strength indicator below. This is called The Forex Heatmap®. It is a forex currency strength indicator for 28 pairs. This is an example from daily trading in the main session. In this example EUR/JPY had a clear sell signal along with several other JPY pairs. The Japanese Yen (JPY) was strong on all pairs and the EUR (Euro) was weak across the board. This drove the EUR/JPY strongly lower.
The EUR/JPY had a valid sell signal in this trading session. Since this pair was also trending down on the larger time frames, not only could a trader have had a successful trade entry, but this pair also has ongoing pip potential due to the trend on the larger time frames. A forex currency strength indicator like The Forex Heatmap® can give you a good trade entry, but if you are trading in the direction of the major trends, there will be additional upside potential to make more pips. This great indicator works for 28 currency pairs and the signals are live in the main trading session, and also the Asian trading session. Pips are possible in both trading sessions.
Another Forex Currency Strength Indicator Example
In this example, the NZD (New Zealand Dollar) is showing consistent strength in the main trading session on the heatmap. This NZD strength, combined with a small amount of CAD (Canadian Dollar) weakness, drove the NZD/CAD strongly higher on this day, a very large movement for such a low volatility pair. Here are the live signals and associated price movement.
Once again this movement is excellent and the signals are solid, indicating NZD strength. In this case, The Forex Heatmap®, the forex currency strength indicator for trade verification, worked great to give you a signals for a strong and profitable trade entry. In this article we have only shown two examples, but this system works daily in both trading sessions for 8 currency groups and 28 pairs. You can trade all of the USD, EUR, CHF pairs, etc. with this great system. We have a complete library of example trading signals you can check for all of the pairs we follow.