If trading forex was that simple, everyone who takes a trading course or watches a trading tutorial would be profitable in the markets. And the truth is most people are not. A lot of amateurs find that when they identify a trend and enter at the support after seeing a confirmation candlestick pattern, the trend changes and they get stopped out.

Or they see it in a consolidation, and it breaks out with a strong candlestick pattern, they enter long, and again it reverses and they get stopped out. This is really frustrating for beginner traders and they might even start to doubt if price action trading still works today.

How to use Forex strength meter?

The reason is very simple: it's not good enough to only look at trends or support levels or candlestick patterns. What's important is you must look at the strength of the currency at that moment in time. Because even if a currency is on an uptrend, even if it breaks out from a consolidation, if the currency is not strong relative to other currencies, you will find that the moment you enter, it reverses easily. This significantly reduces your win rate so most people who start price action trading end up losing money. Now, let me introduce you to the best forex indicator I use to identify the strength of a currency at any point in time — the Currency Strength Meter.

What is a Currency Strength Meter? It is one of the most powerful indicators used by professional bank traders to identify the strength of a currency compared to other currencies.

Currency Strength Indicator – The Traders Secret Weapon

It is also my secret weapon for getting consistent forex profits. With this professional forex indicator, we can tell how strong each currency is so that we can always buy the strongest currencies and at the same time sell the weakest currencies. That's what gives us the strongest edge in the forex market. Look at all these numbers in the table. Whenever a currency has a value of 60 and above, it's considered a strong currency. These are coded in green.

And if a currency has a value below 40, it's a weak currency and it's coded in pink. The ones in yellow are neither strong nor weak, they're neutral. These are the ones we want to avoid. We only want to buy the green ones and sell the pink ones.

Now, you can see that some currencies are strong and weak on different timeframes, i. So it depends on which timeframe you're trading at. There's no perfect timeframe as different traders like to trade on different timeframes. I like to trade on the minute, 1-hour and 4-hour timeframes most of the time. What's weak?

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The AUD as it is pink. I always match a green with a re d on the Currency Strength Meter. They're both strong currencies so whether you go long or short, it's not gonna go clearly in one direction. The two strong currencies will fight against each other! Since they're both weak currencies, it's not gonna go very clearly in one direction. Again, always buy the green currencies and sell the re d currencies.

And do it when you see a retracement on the trend or breakout from the consolidation. When you combine the Currency Strength Meter with price action trading, it becomes a very powerful forex strategy to achieve high returns and win rate in your trading. These results and reviews from real-life forex traders go to show that the Currency Strength Meter is a highly powerful indicator that can massively improve our win rate when combined with a proven forex strategy!

The Currency Strength Meter is a bonus indicator given to my students when you enrol in my Pip Fisher forex trading course. You will be given access to our exclusive one-way Telegram channel that automatically posts minute-by-minute snapshots of major currencies and their relative strength. All you need to do is check this tool and instantly know which are the best currency pairs to trade at any point in time!

As a trusted trading mentor, Adam has clocked more than Since , he has touched the lives of over 1. A currency strength meter is not an indicator that is designed to generate buy or sell signals. Nevertheless, it only tells you the strength or weakness of a currency pair at a particular time. Using a currency strength meter has many advantages besides its simplicity. Most professional traders use it as a short-term indicator when trading. However, here are a few benefits of using a strength meter in your trading strategy.

Assuming you know the correlation strength between two different currency pair, you can avoid any unnecessary hedging of your investment. Consequently, if you open a long trade on both pairs, you will lose on one hand while winning on the other. With the use of currency strength meter, you can prevent any unintentional hedging when trading. Most forex traders do not actually buy a currency, but speculate on the price of the pair.

How to Use Currency Strength Meter and Find the Best Pairs

That is, they forecast the price that one currency will have relative to another over a period of time, in the short or long term. The easiest way to trade forex is to open an account with a professional broker, which offers trading apps for beginners, if you are a beginner, or professional trading apps for the more experienced broker. Most of these brokers not only offer forex trading but also allow the user to trade in commodity trading, bitcoin trading, CFD trading and a lot more.

Among the most popular brokers we undoubtedly have eToro, which among its proposals also includes copy trading, or the ability to copy what the most experienced traders do. The currency strength meter comes handy since it is simple to understand and use. By taking a look at the graphical representation of the meter, they can know the currencies pairs that are performing well or poorly.

While another advantage is that it can be used as a short-term indicator since it displays currencies that are rising or falling. Although it is not for generating signals, you can use it to take an immediate decision or verify trade along with other signals.

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In as much as the benefits of using a currency strength meter sound mouthwatering, they do have certain issues. Especially when wrongly coded. You might experience the following if you use an outdated currency strength meter. Whipsaw signals 2. MetaTrader 4 freezes 3.

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Memory leakage 4. Stutters 5. PC freezes.

Some meters might generate data different from what an original currency strength should generate. However, these additions might come with false signals and contribute to your losing streak if not careful. Using a live currency strength meter does not mean you should not analyze the market and depend on this tool.

They are a good tool to include in your trading armory. Trading can become simpler with the right tools and indicators.