#292: Using Currency Strength and Weakness

Podcast: Using Currency Strength and Weakness In this weekly video: 00:28 – How strength and weakness can help your trading 01:12 – Free daily information published daily here https://theforextradingcoach.com/weekly-video-news.html 02:15 – How to use strength and weakness to your advantage 04:47 – Coaching clients receive much more information Why does the strength of currency really matter, and how can understanding that information help you with your trading? Let's talk about that and more right now. Hi, Forex traders, it's Andrew Mitchem here, owner of the Forex Trading Coach with video and podcast number 292. How strength and weakness can help your trading Now, I wanted to talk about the importance of understanding strength and weakness within a currency pair, and how that can help you with your own trading. I get asked quite often, hey, Andrew, why do you put importance on the strength of a currency? How does it effect my trading, why does it matter, what's the relevance? And it's something, when you think about the logic of understanding strength and weakness, it's something that can dramatically help almost all Forex traders. So, regardless of your style of trading, or what your current strategy is, understanding the potential and the likely strength of a currency for that upcoming day, I believe can certainly help improve your results. Free daily information published daily here https://theforextradingcoach.com/weekly-video-news.html So, luckily for you, I publish, and I've done every day for the last seven or eight years, free information on my website where I publish at 5:00 at New York time, based off the close of the daily charts, the likely strength and weakness analysis for the upcoming 24 hours. So, it's information that you can use to help better trade for that upcoming day, that new day. Now, why does it matter? Well, one of the things you will notice out there is that a lot of people talk in hindsight. They say, you know, economists are very good at it, aren't they? They'll say, yesterday, the British pound did this, or the US dollar did this, or there was some economic event, and the result was better or worse than expected, and this is what happened. Now, a lot of that really quite honestly is useless information, because all that helps is to understand why something moved. It doesn't help us with like, taking new positions, not very much. How to use strength and weakness to your advantage However, if you can understand that, let's say, the US dollar is looking, let's say, really weak, and the Euro's looking really strong, the likelihood is that the Euro against the US dollar is heading upwards. So, if you take that out to a bigger picture, let's say if you look at the monthly charts, and you're seeing the Euro against the US dollar very strong. And even the weekly charts, you're seeing that the weekly charts are showing a lot of strength also, and so the daily charts. Now, if you're trading on any timeframe chart, let's say a four hour chart for example, and you're seeing all this strength in the Euro against the US dollar, and you're then seeing the Euro, US dollar in four hour charts starting to pullback, and then it shows you a good strong bullish price action candle. It needs other things setting up, like it needs to be balancing at a good level, it needs a few extra things, trend line breaks, et cetera, to back it up even further. But let's say you get all those things lining up together, you got almost like the perfect thing setting up there. You got the bigger picture strength, you got the daily strength,