Trend strength indicator.

When opening a new transaction, every trader wants to know how long the existing trend will last, whether it will make a reversal immediately after the order is placed.

The trend strength indicator provides an opportunity to find out this moment; the tool shows how actively a particular currency is being sold and bought.

Unfortunately, the indicator shows information specifically for currencies, and not for currency pairs, and the trader will have to independently draw conclusions regarding the trading instrument.

On the screen you see the seven most popular currencies on Forex - USD, EUR, GBP, CHF, CAD, AUD, JPY, above each of them there is a numerical value of the trend strength and a column with multi-colored rectangles.

This option for displaying information allows you to quickly draw conclusions on the existing situation. The numbers characterize the activity of traders on a 10-point scale; the higher the indicator, the greater the number of transactions made in a given currency.

How to use the strength indicator in trading?

Quite simply - we select two currencies for which the highest indicator is and switch to the chart of this currency pair. If there is an active Forex trend , then we conclude a deal in the direction of its movement.

For example, for the euro and dollar the activity indicator is 8 and 9, we take the EUR USD currency pair and see that within an hour the price is actively moving upward, which means we conclude a buy deal.

Also, using the trend strength indicator, you can control the duration of transactions; it is recommended to close open positions if there is a sharp change in activity for one or both currencies included in the currency pair .

Download the trend strength indicator.