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 that show the end user where the momentums is in the market, the success rate for forex traders would improve greatly. These momentum indicators are for trade entry management. Combined with setting and moving stops a currency trader would be close to creating a profitable trading system.
Look at the example forex currency strength indicator below. This is called The Forex Heatmap® forex heatmap. It is a forex currency strength indicator for 28 pairs. This is an example from daily trading in the main forex trading session. In this example EUR/JPY had a clear buy signal. The Japanese Yen (JPY) was mostly weak on all pairs and the EUR (Euro) was strong. This drove the EUR/JPY sharply up.
The EUR/JPY had a valid buy signal in this trading session. Since this pair was also trending up 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. Movements like this of over 100 ips are what forex traders are looking for, not scalping a few pips here and there. 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 forex trading sessions, and these are the best times to trade the forex market.
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 of 110 pips in one trading session 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 forex trade entry examples you can check for all of the pairs we follow.