PipTick Currency Barometer is one of our favorite indicators. It measures the strength of the 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 strongest. This indicator is designed to measure the strengths and weaknesses of the eight major currencies (USD, EUR, GBP, CHF, CAD, JPY, AUD, NZD) and works on 28 currency pairs. The PipTick CB uses the CCI method for calculating the strength of currencies.
Because the PipTick Currency Barometer compares the first currency in the pair against the second, it is better to use a sophisticated scale.
We are sure that there are many ways to use the PipTick Currency Barometer. For example, you can trade divergences between price and the indicator. Of course, you can also trade the classical trend strategy – buy strong currency, sell weak currency. However, never use this strategy, if the barometer is in the extreme zone. Conversely, this is often an opportunity to trade in the opposite direction (reverse strategy).