Using the Currency Strength Meter in your trading.

Here’s how to avoid bad trades and choose better ones

What does the Currency Strength Meter show me?

This indicator ranks relative currency strength over a recent window — usually short-term.

Read the following with a real chart example to learn how to use currency strength meter in your trading.

How to read this:

• Higher number = stronger currency

• Lower number = weaker currency

• It’s relative, not absolute

• It updates as price moves

So in plain English, right now:

• USD is strong

• CAD is strong

• JPY is gaining

• AUD is weak

• EUR is weak

---

What the Currency Strength Meter is NOT

Important, because this is where people mess up:

The Strength Meter is not

• a trade signal

• a “buy the top number”

• a timing tool

• a standalone system

If you try to trade off this alone, you will get checked.

What it actually does

It answers one question

“Which currency is being accumulated, and which is being distributed right now?”

How YOU should use it (with your system)

If you trade with me, you already determine bias from:

• Dealer cycle

• Structure

• EMAs

• Time of day

This just asks:

“Is the flow agreeing with my idea?”

---

How to use currency strength meter

Let’s Apply It to a Real Chart (EURUSD)

What we see on the chart:

• Clear downtrend

• 13 / 50 EMA stacked bearish

• Price consistently respecting the EMAs

• Lower highs, lower lows

• Pullbacks are weak and corrective

This is markdown, not reversal.

---

Now bring in the Strength Meter:

USD = strong

EUR = weak

 That supports the trend.

Not predicts it but confirms it.

What that means for YOU

• You are not looking for buys

• You are not catching bottoms

• You are looking to sell closeouts

---

Your A+ EURUSD trade

Bias: SHORT only

Ideal entry zone:

• Pullback into 13 (orange)–50 (yellow) EMA band

• Bonus if it lines up with:

  • prior structure

  • previous breakdown level

What you want to see (15m / 30m):

• Price pushes up weakly

• Wicks rejecting higher

• Small consolidation under resistance

• Lower high forms

Entry:  Break back down out of that base

Stop: Few pips above the pullback high & the EMA rejection

Target:

• 25–30 pips initial

• Extension if momentum continues

What to Remember

• Structure gives you the setup.

• Strength Meter tells you if there’s flow behind it.

• Price action confirms the entry.

You trade structure.

This just tells you if there’s fuel behind it.

That’s it.

Strength follows price. Structure leads price.

---

What Happens When the Strength Meter Disagrees With the Chart?

This is where most traders get themselves into trouble.

Let’s say:

The chart shows a clean downtrend

Lower highs, lower lows

Price respecting the EMAs

But…

Strength Meter starts showing EUR gaining strength

USD starts dropping

Now what?

Most people panic and either:

Close good trades early

Or worse… reverse into a bad trade

But Remember- Strenght Meter does not lead the move. It reacts to it.

So when the SM shifts, it usually means one of two things:

Scenario 1: Normal Pullback

Price pulls back into EMA

SM shifts slightly

Trend structure remains intact

This is normal and where good trades come from.

You don’t exit.

You don’t flip bias.

You wait for structure to confirm continuation.

Scenario 2: Real Shift in Control

Price breaks structure

Starts holding above EMAs (in a downtrend)

Higher lows begin forming

Strength Meter continues shifting

Now we pay attention.

Because now:

Structure AND flow are changing and that’s when bias changes.

So, here is your Rule

If Strength Meter disagrees but structure is intact → ignore the Meter

If Strength Meter AND structure shift → reassess.

This is the difference between getting shaken out of good trades and holding through normal pullbacks

Most people let indicators control them.

You use them to support what price is already telling you.

One Line to Remember

Structure decides. Strength Meter supports. Price confirms.