Daily currency strength shows you a graphic picture of what currencies are strong and what currencies are weak on a daily basis.
As for example, today pre Asia opening AUD is +3 while EUR is -5, meaning that the order flow on euro/aud is negative.
The scale range from -7 to +7 and the strength is determined by either two moving averages 12 and 5, or the 8 ema (also known as the trigger line).
The double ma captures the overall trend direction in a more slow phase while the 8 ema captures the slightest change in trend direction and are more alert but also comes with more "choppiness". To find out more on how to actually determine the daily currency strength, click HERE.
In the .pdf file the 8 EMA is used, but the same principals apply for the double 12,5 MA approach.
As for example, today pre Asia opening AUD is +3 while EUR is -5, meaning that the order flow on euro/aud is negative.
The scale range from -7 to +7 and the strength is determined by either two moving averages 12 and 5, or the 8 ema (also known as the trigger line).
The double ma captures the overall trend direction in a more slow phase while the 8 ema captures the slightest change in trend direction and are more alert but also comes with more "choppiness". To find out more on how to actually determine the daily currency strength, click HERE.
In the .pdf file the 8 EMA is used, but the same principals apply for the double 12,5 MA approach.
If you want to determine the WEEKLY currency strength, the same method applies, but once a week obviously. Over the weekend is a good time to determine the weekly currency strength.