You identify what’s the strongest currency pair right now and immediately buy, thinking the price will move higher - big mistake.Ī currency strength meter isn’t meant to generate buy/sell signals. Now, a mistake many traders make is to blindly trade based on the currency strength meter.

(And later, I’ll teach you how to create your own currency strength meter so you have confidence to use it.) Mistake #2: You use the currency strength meter to time your entries That’s why no matter what tools or indicators you use, you must always know the formula behind the currency strength meter and how it works. What if the currency strength meter only works on the daily timeframe but, you’re unaware of it, and use it on the lower timeframe? There’s a formula behind it to determine the strength/weakness of a currency.īut if you don’t know the formula behind it, how can you trust the result of the currency strength meter?

Now, a currency strength meter is like any other trading indicator. So here are the mistakes to avoid when using a currency strength meter (the stuff nobody tells you) … Mistake #1: You randomly use a currency strength meter without knowing how it works That’s why traders lose money even with a “GPS” in their hands. If you google “currency strength meter”, it returns 8.3 million results - crazy.Īlmost none of them tells you the pitfall to avoid when using a currency strength meter. It helps you to identify the strongest/weakest currencies so you can pick the right currency pair to trade (more on this later).īut first, I want you to avoid these common mistakes traders make when using the currency strength meter… Do you make these mistakes when using a currency strength meter indicator? Well, that’s where a currency strength meter (aka forex strength meter) comes into play. You’re bullish on EURO but, you have the option to trade: EURUSD, EURJPY, EURGBP, EURAUD, EURNZD, EURCAD, etc. Now, one of the struggles of a Forex trader is you’ve got many currency pairs to choose from. What is a currency strength meter and how does it work?

Live currency strength meter online