{"id":103134,"date":"2019-09-17T11:56:51","date_gmt":"2019-09-17T09:56:51","guid":{"rendered":"https:\/\/ftmo.com\/?p=103134"},"modified":"2023-09-21T10:44:48","modified_gmt":"2023-09-21T08:44:48","slug":"forex-strength-meter","status":"publish","type":"post","link":"https:\/\/ftmo.com\/en\/forex-strength-meter\/","title":{"rendered":"Forex Strength Meter – How to pick the best trade!"},"content":{"rendered":"
We have received this very interesting article from one of our followers. The article starts with a brief explanation of FX movements, which serves as a good reminder to all. The main part of this article is dedicated to the analysis of a strength \/ weakness of any individual pair. This approach can be used for smaller and higher time frames, giving traders a possible idea of how to add a meaningful confirmation to their trading system.<\/em><\/p>\nCurrency and Currency Pair<\/span><\/h3>\n
\nIn this article, we will talk about currencies and currency pairs, so let’s first define what do we mean by them. As we all know, currency pairs such as EURUSD, USDJPY and many others – a currency pair is the quotation of two different currencies, with the value of one currency being quoted against the other. In the pair EURUSD there are two currencies involved the Euro (EUR) and the US Dollar (USD). The price\/quote of EURUSD represents the value of the Euro (EUR) against the US Dollar (USD). This article is about individual currency strength, to understand the movement of the currency pairs involving that particular currency.<\/span><\/p>\nWhy It Is Important?<\/span><\/h3>\n
\nThe movement of a currency pair depends on the relative state of two individual currencies. EURUSD price 1.1500 means that 1 Euro (EUR) is now trading at 1.15 US Dollar (USD). This price goes up and down for many reasons. The price may rise if the EUR gets relatively stronger than USD and can fall if the EUR gets relatively weaker than USD. That can happen in many ways. For a price rise of EURUSD the EUR has to get stronger while the USD strength remains unchanged, or the USD has to get weaker while the EUR strength remains unchanged. For a price fall, the situation will be vice versa.<\/span><\/p>\n