How to Use Easy Currency Strength to Identify Trading Opportunities
Learn how to interpret currency strength
When trading in the forex market, one of the key factors to consider is the relative strength of different currencies. This is where the Easy Currency Strength app comes in handy, providing a quick and visual way to assess which currencies are strong and which are weak.
Understanding the Currency Strength Colors
In the app, each currency is assigned a strength value, which is then represented by a color:
Red (Strength < 3): Very Weak
Orange (Strength < 6): Weak
Yellow (Strength < 8): Neutral
Light Green (Strength < 10): Moderately Strong
Green (Strength < 12): Strong
Bright Green (Strength ≥ 12): Very Strong
By comparing these values, you can determine which currency pairs have a potential trading opportunity. A strong trading signal usually occurs when there is a clear difference between the strength of two currencies in a pair.
Example: How to Read the Strength Values on M30
Let’s look at the M30 timeframe with the following currency strength values:
NZD - 1 (Very Weak, Red)
JPY - 1 (Very Weak, Red)
CHF - 6 (Weak, Orange)
AUD - 7 (Neutral, Yellow)
GBP - 8 (Neutral, Yellow)
CAD - 9 (Moderately Strong, Light Green)
EUR - 10 (Strong, Green)
USD - 14 (Very Strong, Bright Green)
Identifying Strong Trends
To find a strong trading opportunity, we look for pairs where one currency is significantly stronger than the other.
USD (14) vs. NZD (1) or JPY (1)
The USD is very strong (Bright Green), while both NZD and JPY are very weak (Red).
This indicates a strong bullish trend for USD/NZD and USD/JPY.
Traders might look for buying opportunities in these pairs.
EUR (10) vs. NZD (1) or JPY (1)
The EUR is strong (Green), while NZD and JPY are very weak (Red).
This suggests EUR/NZD and EUR/JPY are likely to trend upward.
Avoiding Unclear Signals
Now, let’s consider AUD (7) vs. CHF (6). The strength values are close, meaning neither currency is dominant. In this case:
AUD/CHF may not have a clear trend because both currencies are of similar strength.
It’s best to wait for a more distinct strength difference before making a trade.
Making Better Trading Decisions
By using the Easy Currency Strength app, you can:
✅ Quickly identify strong and weak currencies
✅ Spot potential trading opportunities based on strength differences
✅ Avoid unclear or range-bound pairs
The key is to focus on pairs where one currency is much stronger than the other, as this increases the probability of a trend forming.
📱 Download Easy Currency Strength Now:
Try it out and start making more informed trading decisions today! 🚀
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