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Anyone find any use for currency strength meters as I really never found real use for them? They show strength currently but usually it does not indicate future movement.
NOTHING will indicate future movement. If it did, no amount of money could by that system that indicates future movement. Thats why its called speculation.
I have tried trading using currency strength meters but I have never been sure which way to trade them. They do show which currencies have been strong but not which are getting stronger. As such, is a strong currency more likley to get stronger or has in exhausted its surge upwards and is now more likley to retrace?
If you pair a strong vs. weak currency, you can then trade a trend-following strategy on it and ride the trend.
For example, look at the EURCAD + EURAUD - massive downtrends since about the start of the year.
Currency strength meters will give you strength at the current time. If you just look at the numbers it will tell which is weak and which is strong right now, but that does not mean it will stay that way. If you use these meters you should use the ones that show the slopes or trends of each currency therefore a possible direction.
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