Currency Strength

The Currency Strength indicator scores five user-selected currencies against one another and plots how those scores evolve across a chosen period. It's LuxAlgo's build of the currency strength meter: each currency's close-to-open change is normalized to a percentage, summed across every pairing in the basket into a composite score, and accumulated until the period resets — so "strength" means measured relative performance, nothing vaguer.

How to Trade the Currency Strength?

• Ranking read: currencies topping the meter are outperforming the basket over the window; those at the bottom are lagging — the raw material for choosing which pairs deserve attention.
• Trailing strength lines: the historical plot shows each currency's accumulated relative performance, resetting at period end so readings stay comparable across cycles.
• Scatter quadrants: Strong (green) is positive strength above its prior value; Improving (yellow) is negative strength but rising; Weakening (aqua) is positive but fading; Weak (red) is negative and falling.
• Meter resolution: raise it to expose finer differences between closely matched currencies.

The scatter view is the distinctive piece: by plotting current strength against the previous period's, it separates level from momentum — a currency that is strong-but-fading reads very differently from one that is weak-but-turning.

What the Currency Strength Shows

• The trailing relative strength of the five selected currencies over a user-defined timeframe period, or a scatter plot as an alternative display.
• A strength meter whose visibility, resolution, position, and size are configurable.
• A scatter graph with adjustable horizontal and vertical width in bars for finer placement.
• Under the hood, each pairing's reading is the normalized close-to-open change — (close − open) / open × 100 — composited per currency across the basket.

Frequently Asked Questions

What does "strength" mean here?

Performance, precisely: the normalized close-to-open change accumulated across every pairing in the basket over the selected period. A stronger currency has simply performed better within that window.

How do I turn readings into trade ideas?

Strength ranking narrows the field to outperformers and laggards; from there, verify relationships before committing. Correlation Clusters groups instruments by how they actually move together — a useful cross-check against doubling up on the same exposure.

Is the Currency Strength indicator free?

Yes — it costs nothing on the LuxAlgo Library. The page can also hand it to LuxAlgo's AI, Quant, for hands-on testing whenever you like.