Currency strength matrix is a currency strength meter tool developed to measure the strength of the eight main currencies.
The absolute strength of a currency can be a good indicator of a potential movement of the market.
A matrix of values shows the strength of the currencies. In this matrix, each rows is a currency and each column is a timeframe.
A cell contains the difference between the value of the cumulative moving average in the current candle and the previous.
For a cumulative MA, we consider all the pairs involving a specific currency, expressing the difference as percentage.
You can sort the currencies according to their strength in a specific timeframe to see the strongest ones on top, and the weakest ones at the bottom.
Even if the look of the matrix seems confusing, it isn't hard to understand this indicator.
The currencies are sorted by strength in a specific timeframe, so that you can find the strongest currency on top and the weakest one at the bottom.
You can choose to see the actual resulting value of the applied formula or only the colour and symbol.
A green cell, or with a positive numeric value, means that in that timeframe, the currency has gained strength compared to the previous candle.
A red cell, or with a negative value, means that on the opposite, it has lost strength.
You might be asking "Why so many timeframes?"
Well, you can select to ignore and hide some of the timeframes, however, seeing how a currency is doing across all the timeframes provides a much better picture of its trend.
A currency with all its cells in green means that it is increasing its strength across the board. Conversely, a currency with all red cells is losing strength.
