Currency Strength Meter (Forex Meter), a closer look…
Dear Forex Traders:
Trading in the Currency Market is all about timing and proper money management, any veteran Forex trader will tell you that… But unless you’re scanning your chart 24/7 non-stop, you’re likely to miss the action until it’s too late. That’s why I’ve programmed the Currency Strength Meter that displays all major currencies such as:
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USD
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EUR
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GBP
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CHF
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JPY
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CAD
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NZD
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AUD
…in a easy to read format… as a matter of fact, after using my meter for just a few minutes, you’ll come to appreciate the idea behind this ingenious design… (I can’t take full credit for it, I actually got the idea from a great trader Tom Yeomans, but his meter is not free and you need to mess around with excel, blah blah…)
So the concept of this meter is pretty simple, let me explain:
In order to determine the strength of USD, you’ll look at the daily high and low of EUR/USD, take the total amount of pips in range, let’s say that the following is true:
EUR/USD High: 1.5150
EUR/USD Low: 1.5050
DAILY Range: 100 pips
EUR/USD is currently at: 1.5125
Now in order to get the strength from EUR/USD, you will take the current movement in pips, which is 1.5125 minus the LOW (1.5050), and you’ll get 75 Pips; divide 75 pips / 100 pips you’ll get 75% on the EUR/USD or 75% on EUR and 25% on USD.
If the opposite is true, let’s say that currently EUR/USD is at 1.5075, or 25 pips from the LOW, then the strength for EUR/USD is 25% EUR and 75% USD.
Then you do the same thing for GBP/USD, AUD/USD, USD/CAD, USD/CHF, USD/JPY, and NZD/USD… Add all of them up and then divide by 7 (because we’ve taken data from 7 pairs) and that’s your final strength number…
Of course I also filter the strength with weight added formula, meaning that if a pair has more volume, it is being counted with more weight… This is proprietary formula as you can’t count USD/CAD strength as the same as EUR/CAD, because USD/CAD obviously takes the lion share of the Canadian Dollar volume.
So you may ask me, what is the best way to use this strength meter? I think you can definitely benefit by matching the best currencies after news release, this is called Forex News Trading, or just trade in the direction of market sentiment…
Of course I’ve been using this tool daily since longer than I can remember (a little exaggerated there), if you want to see some real life application of my Currency Meter, check out some of the live forex trading and analysis video on my blog, you’ll definitely grow to love this tool as I have.
– Henry
Tags: Aud Usd, Cad Usd, Canadian Dollar, Closer Look, Currency Market, Currency Strength, Forex Traders, Money Management, Pips, Strength Meter, Strength Number, Usd Aud, Usd Jpy
Henry Liu | 
November 29, 2009 7:35 pm
44 Comments
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By eric, December 15, 2009 @ 3:51 pm
hi henry, do you think you can code this indi so that it will give “pair” strength or weakness?
By Henry Liu, December 15, 2009 @ 4:56 pm
I think that would defeat the purpose of the meter because it would be hard to compare pairs with each other, like comparing apples with oranges. But interesting concept.
Henry
By kyle kwong, December 15, 2009 @ 6:42 pm
i like to use your curency meter
By stevan, December 16, 2009 @ 2:30 am
dear henry…i wanna ask u something….here is my question….”why if i am running this currency streght suddenly my laptop going off”…can you explain to me about that…thanks
best regards
stevan
By Admin, December 16, 2009 @ 5:02 am
Stevan:
The Currency Strength Meter should not have anything to do with your laptop going off. So I don’t really know what to tell you, except to try again and see if it happens one more time.
Henry
By Emmyk, December 16, 2009 @ 8:48 am
Hi henry,
i have always admired your drive and passion for forex. this is great. i tested it as soon as i saw your email and i can say it works. great job, keep it up.
By Omar, January 3, 2010 @ 11:22 pm
hi, i found the link thanks.
Im just wondering what is the strength of the currency was 8.0 for example but when I start the system it is 7.0. So technically the currency was strong and is strong when I look at it but I didnt know it was stronger. Is there any way to show the history? Because it may then be predicatable to follow the trend just like charts.
Thanks.
By FreddyFX, January 16, 2010 @ 12:59 am
Hi Henry.
VERY PLEASED with your work.
Will learn ASAP how to use it the best.
Greetings from Puerto Vallarta – Mexico
By Admin, January 20, 2010 @ 11:36 pm
You can use the chart for history. Right now there is no need for history as the chart pretty much explains all.
By shola, February 16, 2010 @ 8:09 pm
plz could some one tell the reason why great henry is giving out the holy-grail strenght meter for free of charge if there is no reason may THE ALMIGHTY IN HIS INFINITE MERCY GRANT HIM EVER GREEN BLESSING
By Nick, February 22, 2010 @ 5:13 pm
Hi Henry,
The meter is very intersting. I just downloaded and am looking forward to using it. I am wondering: how often does it update? I have had it running for an hour but there numbers have not changed once.
Many Thanks
Nick
By Arnold, February 24, 2010 @ 3:48 pm
Xin Nian Kuai Le Henry
Your strength meter is fantastic, a pity it cannot works on my Vista…
Gong Xi Fa Cai
Arnold
By Admin, March 6, 2010 @ 4:56 pm
It works on vista, don’t know why it doesn’t work on your PC. However, I haven’t tested the 64-bit Vista yet. So I cannot tell you for sure.
By Admin, March 6, 2010 @ 4:57 pm
Nick:
Did you have MT4 installed and DDE ENABLED?
By Davy, March 11, 2010 @ 12:05 pm
Henry… Thanks for the meter! I’m just now learning Forex. It should help a lot!!
Davy
By Ted, March 11, 2010 @ 11:03 pm
Are there some instruction re. how to get the meter to work, i.e. you mentioned “DDE Enabled” needs to be checked; anything else?
Right now it’s just blank; no numbers at all. Can I have 2 MT4’s up at same time? Does one of those checkboxes on front need to be checked, or can they both be blank?
I’m not asking how to trade with it, just how do I get it to work. Some kind of list of instructions might be helpful; if I missed it please let me know…thanks.
By yat, March 12, 2010 @ 2:29 am
can you tell me the detail how to use your meter becoz i dont get it
By Johan Stoop, March 12, 2010 @ 1:17 pm
I downloaded MetaTrader 4 and your Currency Strenght Meter software, how do I get it to be “operational” on the MT4 Platform.
I ran both, but see only the MT4 Platform??
Thanks
Johan
By Van, March 13, 2010 @ 10:20 pm
First, thank you for the work you have put into this strength meter & make it available free of charge.
If I may make a suggestion for future updates.
I would like to see the currencies be selectable. For example: I don’t trade any of the NZD pairs, rarely the CAD or AUD pairs. By having this option, it would further reduce the demand on a system.
But I have to say, this is still nice work.
Thanks again,
Van
By mat1500, March 14, 2010 @ 4:12 am
How do I get the indicator to change values mine has read the same the last three days. Thanks for your help
By Admin, March 16, 2010 @ 8:31 pm
Mat:
http://www.currencystrengthmeter.com/78/currency-meter-installation-guide/
Follow it, thanks!
Henry
By Admin, March 16, 2010 @ 8:39 pm
Johan:
Check my installation guide. It should be self-explanatory.
http://www.currencystrengthmeter.com/78/currency-meter-installation-guide/
Henry
By SAJID, March 20, 2010 @ 9:33 pm
Can this meter work on platforms other than MT4
By Admin, March 22, 2010 @ 4:05 am
Sajid:
Unless you can provide live feed of currency quotes with daily high and lows from other platforms…
By chong, March 23, 2010 @ 5:29 am
hi henry
the numbers now all shown up but i have a question
if eur show 2.70
and gbp show 3.50
so what dows that mean? gbp stronger ?
thanks
chong
By Admin, March 24, 2010 @ 2:30 pm
Chong: Yes, GBP is stronger
By chong, March 26, 2010 @ 3:55 am
hi,
so if gbp is stronger, we can expect it wii go up
for gbp/usd pair?
By Admin, March 29, 2010 @ 11:25 am
Yes, Chong.
By Ovyeh (Nigeria), April 9, 2010 @ 3:17 pm
Dear Henry
I have been following for about 3 weeks now. I want to really appreciate your contribution to my trading. Because of you i am a better trader now. thanks for the CSM it was awesome. Keep up the good work. Please i want you to be my mentor.
Thanks
By kelvin, April 20, 2010 @ 7:37 am
The Auto-Trend Line indicator can’t be attach to chart, it says “Tiny Trendline has Expired’. How to get it updated?
By Wong Sleman, April 22, 2010 @ 2:39 am
hi Henry..great work man!
Thank you for keeping this meter free.
I was just wondering if you may consider put an alert on your currency meter. So it alerts you when it turns from red to orange or yellow for example.
Thanks a lot …keep it up Bro!
By Rajesh Kumar, April 25, 2010 @ 3:43 am
Thanks Henry for this product. I can see many people saying thanks after downloading. But most of them don’t comment after using it. I would like to see all the comments on the performance, the actual profit /loss after using this.
By CJ, May 1, 2010 @ 9:08 pm
Thank you very much for the free meter! Is there anyway to chart the meter over time? And over what time frame is it based?
Thank you!
By lim eng chuan, June 4, 2010 @ 4:20 am
Hi Henry
Just installed your currencystrenghtmeter. Thanks for your selfless effort to provide free service for all.
However, it would be even greater of you, if you could supply us with charts for the major currency strength movements so that traders can follow the trend for each currency.
Keep it up with your great effort.
By chel, June 4, 2010 @ 2:44 pm
What happens if I have more than one MT4 platform open at a time
By andrew, June 7, 2010 @ 10:36 pm
Is the Currency Strength Meter dynamic, in that, it can be used on different time scale,to view relative currency strength in that time period ie ,3 hrs,or 60min,etc
By City Guy, June 11, 2010 @ 12:57 am
Henry,
Nice tool. I am also using Tom’s meter and i am surprise how close both results are. If you can also add display in graph with history, that will be perfect. Display history lines can give a better idea where currency strengh is moving. Would love to shre more if you need feed back.
By mathew, June 25, 2010 @ 10:04 am
Hi how are you?
Mate great program saves alot of time. Do you reckon you could make it actually pick the pairs automatically for you? that solve alot of problems and save alot of time
By Cal Pereira, June 26, 2010 @ 12:40 am
Henry, this is a fabulous tool. You should be commended for making it available free of charge in this world of eternal consumerism. Your tutorial is well put together, I am about to test my new improved “Henry Liu” inspired trading strategy in July 2010 with real money. I will keep you posted with the results.
By Tim, July 20, 2010 @ 3:38 pm
Hi Henry
Your meter is awesome and should help alot but am i right in thinking that the real moves come when a currency is either gaining or losing strength rather than being at a static strength level? If this is the case, is there any way in which we could have a feed into say Excell to put into a live graph so we can see the trend of the currency strength? This could provide very strong trading signals by looking for the currency pair with the strongest trending reverse correlation. What does anybody think?
By Gabriel, August 10, 2010 @ 6:47 pm
Thank a lot for sharing this tool ; unfortunately, it doesn’t work on my PC (windows 7. The only difference i can think about is that i use ActiveTrades Metatrader while you use FX. (DDE is enabled).
Have you some idea of what might be wrong and must be changed ?
Thanks a lot
G.
By Bence, August 26, 2010 @ 12:02 pm
Dear Henry,
I’ve just downloaded your tool.
I followed the installation guide, but it doesn’t work.
I only see 0.00 at every currency.
Can you help?
By Henry Liu, September 5, 2010 @ 10:11 pm
Ok then make sure your provider doesn’t have an unconventional symbol such as EURUSDm. It you do see m, or -, or FXF, or anything after the pair, you need to check the box and enter that in the textarea below. There are 2 checkboxes on the meter, you need to check the 2nd one that says “My broker…” and then a textbox will show up, enter the m, or -, or FXF…
By Henry Liu, September 5, 2010 @ 10:15 pm
Ok then make sure your provider doesn’t have an unconventional symbol such as EURUSDm. It you do see m, or -, or FXF, or anything after the pair, you need to check the box and enter that in the textarea below. There are 2 checkboxes on the meter, you need to check the 2nd one that says “My broker…” and then a textbox will show up, enter the m, or -, or FXF…