Some meters may also use fundamental factors, such as economic data, political events, and market sentiment, to determine currency strength. It displays the strength of each currency as a numerical value or a graph, which makes it easy for traders to identify the strongest and weakest currencies at a glance.Ĭurrency strength meters typically use a combination of technical indicators, such as moving averages, Relative Strength Index (RSI), and Stochastic Oscillator, to calculate the strength of a currency.
The meter calculates the strength of a currency by comparing it against other currencies, usually in a currency pair. A currency strength meter is a tool used in forex trading to analyze the strength or weakness of various currencies in real-time.
