How It Works
Understanding how our Currency Strength Meter analyzes forex markets in real-time
📡 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 28 major currency pairs formed by the 8 major currencies:
🧮 Strength Calculation Algorithm
For each currency, we calculate its strength by measuring its performance against all other major currencies over your selected timeframe:
Strength = Average(% Change vs All Other Currencies) × Normalization Factor The result is normalized to a -100 to +100 scale:
- +100 = Extremely strong (gaining against all currencies)
- 0 = Neutral (balanced performance)
- -100 = Extremely weak (losing against all currencies)
⏱️ 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
🎯 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):
→ BUY EUR/JPY (divergence: 83 points)
Higher divergence = Higher confidence in the trade direction.
🔥 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 28 pairs and confirm your trading ideas.
Ready to Start?
Apply these concepts with live market data
Open Currency Strength Meter →