pairs you trade during news releases, you can definitely add 10 50 pips more than just selecting a default pair, such as the audusd. Daily high-LOW, this is the Daily High/Low range for the currency pair. Heres a quick formula on how the meter is calculated (pips / daily high-LOW ) * BIS Weighted Formula (pips / daily high-LOW ) * BIS Weighted Formula Then divide by Number of Pairs. The daily range is calculated from 5:00pm EST to 4:59pm EST 24 hour period, standard day for the Forex market, BIS Weighted Formula, once you get the reading and based on the pair, youd multiply that using Bank of International settlement Forex volume distribution list. For instance, the reading of EUR will require the meter to repeat the process 7 times: eurusd, eurgbp, eurchf, eurjpy, euraud, eurcad, eurnzd. The advantage is that it can pinpoint you to the best pair(s) to trade by identifying both weak and strong currencies. How Does The Meter Calculate Currency Strength? There are many uses for the CSM, watch videos above to find out more: One of the best uses for me is to gauge market condition before and after an economic news release. The color code used in the meter is pretty self-explanatory, with: blue as weak (0.0.0 yellow as normal (2.1.0 orange as strong (5.1.0). The Strength readings vary from.0.0, with.0 being the weakest and.0 being the strongest (CSM.0.6 pictured below).

How To Use Currency Strength Meter? Pips, amount of pips this pair is at in reference to the daily range. If eurusds low.3450 and high.3550, the daily range would be 100. Let me take this opportunity to explain what Currency Strength Meter (CSM) is and how to take advantage of this amazing little tool, because once you start using it, you wont take another trade without it! If the news comes out favoring AUD, the best choice would be to BUY audchf, since it has the best match up, with AUD.80 and CHF.00; if the news is negative for AUD, then the best choice would be to sell. Finally, you take the average reading and divide the result by the number of pairs, which. I like to look at the market and try to find the best pair(s) to trade prior to the release; for instance, look at the meter below (CSM.0.6 shown Now lets say we are getting the Australian Retail Sales figure in just under. Repeat this process for every pair that contains your currency.

Forex meter
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