How It Works
Understanding how our Currency Strength Meter analyzes forex markets in real-time
๐ก Real-Time Data Collection
Our system continuously fetches live forex quotes from the Massive API, which aggregates data from major forex exchanges worldwide. We monitor all 27 major currency pairs formed by the 8 major currencies:
๐งฎ Currency Strength Calculation Formula
For each currency, we calculate its strength by measuring its percentage change against all 7 other major currencies over your selected timeframe. Here's the exact formula:
The Formula
Currency Strength = (ฮฃ % Change vs Each Currency) รท 7 ร 50 Step-by-Step Calculation Example: USD Strength
To calculate USD strength, we analyze USD performance in all 7 of its pairs:
| Pair | Current | Previous | Change | USD Impact |
|---|---|---|---|---|
| EUR/USD | 1.0850 | 1.0900 | -0.46% | +0.46% |
| GBP/USD | 1.2650 | 1.2680 | -0.24% | +0.24% |
| USD/JPY | 149.50 | 148.70 | +0.54% | +0.54% |
| USD/CHF | 0.8820 | 0.8780 | +0.46% | +0.46% |
| USD/CAD | 1.3580 | 1.3550 | +0.22% | +0.22% |
| AUD/USD | 0.6520 | 0.6560 | -0.61% | +0.61% |
| NZD/USD | 0.5980 | 0.6010 | -0.50% | +0.50% |
| Average USD Performance | +0.43% | |||
USD Strength = 0.43% ร 50 = +21.5 Understanding the Calculation
- Base vs Quote: When USD is base (USD/JPY), pair going UP means USD stronger
- Quote Currency: When USD is quote (EUR/USD), pair going DOWN means USD stronger
- Normalization (ร50): Converts small % changes to readable -100 to +100 scale
- All 7 Pairs: Every currency is measured against exactly 7 others for fairness
Why This Method Works
Unlike single-pair analysis, this method reveals true currency strength. A currency might look strong against USD but weak against everything else. Our calculation catches this by averaging performance across ALL pairs.
๐ฑ No Download Required
Unlike MT4/MT5 indicators or TradingView scripts, our meter runs entirely in your browser. No installation, no platform dependencies - works on desktop, tablet, and mobile.
โฑ๏ธ Multiple Timeframe Analysis
Compare current prices against historical data for different trading styles:
1H
Scalping & Quick trades
4H
Intraday trading
1D
Swing trading
1W
Position trading
1M
Long-term trends
๐ฏ Identifying Trading Opportunities
We automatically identify the best potential trades by finding pairs with the highest divergence between strong and weak currencies:
If EUR is strongest (+45) and JPY is weakest (-38):
โ BUY EUR/JPY (divergence: 83 points)
Higher divergence = Higher confidence in the trade direction.
๐ฅ The Strength Matrix
Our heat map displays the performance of every currency pair at a glance:
- Green cells = Row currency stronger than column currency
- Red cells = Row currency weaker than column currency
- Intensity = Magnitude of the move
Use the matrix to quickly scan all 27 pairs and confirm your trading ideas.
Ready to Start?
Apply these concepts with live market data
Currency Strength Meter