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The FX Pair Finder
Day traders, which major forex pair is the best to trade at any point in time? The FX Pair Finder tool finds them for you. It is the perfect solution.
These are the advantages of the FX Pair Finder tool:
- See which currency is strong and which currency is weak.
- Their strength is expressed in percent for easy comparison.
- Used it in any time frame.
- Easy to understand. Easy to use.
- It is FREE
Each major currency trades against four other currencies. For example, the USD against the EUR, the JPY, the CHF and the GBP. The Finder analyses the strength of each currency against the four other currencies. This relative strength, expressed as percentage change, is then plotted in an easy-to-interpret single line. Simply put, if a currency’s curve goes up, it is because this currency is strong against the four others.
Finding the best forex pair to trade
Ideally traders should always trade the currency pair which consists of the strongest currency and the weakest currency. This example shows the relative strength curves of the five major currencies over a period of 90 days. The GBP is clearly the strongest. The USD is the weakest. This would indicate that buying GBP/USD is the way to go.
The curves are plotted as a 10-day moving average. They are smooth and easy to interpret. As usual, all parameters can be changed in the Designer Dialog window.
- Open the chart of the EUR/USD forex pair. It is vital to load the tool in the EUR-USD chart, otherwise it will not work.
- In the WHS Proposals folder, select the FX Pair Finder tool.