Currency Indexes

Currency Indexes Indicator - as a filter to choose best currency pair to trade today.

Firstly - what is currency index? - You know "Dollar index - it measures the value of the U.S. dollar relative to a basket of top 6 currencies". It is used to understand the dollar is strengthening or weakening. I think it is wise to measure strength (index) of Every currency you trade, to avoid uncertain situations during a day.

Looking at screenshot - let's analyze popular pairs EUR/USD, USD/CHF and USD/JPY. We can see both JPY and USD are in sideways at similar levels - non of these currencies has no rise nor fall sentiment, so this pair gives us no opportunities today. EUR and CHF are cheapening that day - so we can sell EUR or CHF and buy USD. But we also see how AUD is getting stronger - so it is even more reasonable to sell EUR not against USD but against AUD.

And so on ... I think the main idea is to go out from comfort zone, and to give attention not only to currency you like to trade, but to See a bigger picture of a currency market at all, to be not a romantic person based on sympathies to these or that instrument, but to be a Trader - the person who knows when and which instrument to trade to get profit.