The Currency Barometer indicator is a unique tool that measures the strength of two currencies represented in the pair and compares the difference between them. The result is shown as a histogram where you can simply identify which currency is the strongest.
This indicator is designed to measure the strengths and weaknesses of eight major currencies (USD, EUR, GBP, CHF, CAD, JPY, AUD, and NZD) and works on 28 currency pairs.
The indicator uses the CI method (Commodity Channel Index) to calculate currencies’ strength and weakness.
Because the Currency Barometer compares the first currency in the pair against the second one, it is better to use a sophisticated scale.
We are sure there are many ways to use our Currency Barometer. For example, you can trade divergences between the price and the indicator.
Of course, you can also trade the classical trend strategy – buy a strong currency and sell a weak one. However, never use this strategy if Currency Barometer is in the extreme zone. Conversely, this is often an opportunity to trade in the opposite direction (reverse strategy).