This indicates which currencies are GAINING value and which currencies are LOSING value. As a result, we see which pairs to trade.
By trading the currency gaining the most value against the currency losing the most value = We aspire to ride the strongest trends, obtain the highest performance, be in the safest trades and to avoid the choppy chaotic charts.
--- This layout displays the Value, Performance and Pressure behind each currency. Let's break it down by panel.
-- In the top panel: Indicator 'Currencies' / Settings: Performance All 8 Currencies. We see the performance of all 8 major currencies. Most recent bars: AUD (Orange line) is the strongest currency. USD (Red line) is the weakest currency. So, we bought the AUDUSD pair because both currencies are going opposite ways (AUD going up / USD going down).
-- In the second panel: Indicator 'Currencies' / Settings: Pair Performance. We see the Performance of the 2 currencies of the pair on chart. The AUD (Orange line) and the USD (Red line) + the Pressure of the Pair in the background. The brighter the color in background = The higher is the performance for the pair on chart.
-- In the 3rd panel: Indicator: The 'Template'. (Over 10 years in R&D to paint the chart perfectly.) Resistance was broken and retested. Resistance became support.
-- In the 4th panel: Indicator 'Currencies' / Settings: Pressure. We see the Pressure behind each currencies of the pair on chart. The Higher is the line = More Upside pressure. The Lower is the line = More Downside pressure.
-- 5th panel: Indicator 'Currencies' / Settings: Value of the Base currency (AUD). Displays the Value of the AUD + Intensity Background (Up/Down)
6th panel: Indicator 'Currencies' / Settings: Value of the Quote currency (USD). Displays the Value of the USD + Intensity Background (Up/Down)
Strategy for 5th and 6th panels: Blue Background (One Currency Gaining Value) AGAINST Red Background (One Currency Losing Value) = Pair Trending.
(If you want to learn more about this, we have recorded a video. Comment 'Video'.)
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.