Use currency strength meter to select the strongest currency and weakest currency and then trade them together. Sell the weakest currency and buy the strongest currency.
Currency Strength Meter Graph
As a first step using a currency strength meter is to check the currency strength meter bar graph where you will see which currency is the strongest and which currency is the weakest.
Your goal is to find the strongest currency and combine that currency into a Forex currency pair with the weakest currency.
That means you will lower the risk of trading weak currency against strong currency by buying or selling the currency pair.
Example Using Currency Strength Meter
As an example let’s take two currency pairs from the bar graph where one currency is strong and another one is weak currency.
The strongest currency is GBP and the weakest currency is NZD.
There are two options in the currency strength bar graph. I will use GBP and NZD currency and make a currency pair.
In trading you define where the price of a currency pair will move. If you think it will move up then you buy GBPNZD. That means you predict the GBP will be stronger and NZD will be weaker.
When you are ready for trading you use a currency strength meter to increase the chance of success in your prediction.
So, GBP is stronger than NZD and you expect the price of GBPNZD will rise in value.
CSMapp is a tool to help you define which currency is strong and which currency is weak. That way you will increase the success outcome in your favor because strong currency should rise in value compared to weak currency.
Do not make a mistake with the currency strength meter which many traders do and that is to use it to base trading decisions on it.
Use Currency Strength Meter as a Tool
Do not use CSMapp as a trading indicator and base your trading decision on the graph or line chart you see.
Use CSMapp as a tool that will filter good trading currency pairs among all trading pairs available for trading.
CSMapp does not work as an indicator telling you the right direction of a currency pair because it is not meant to do that. Using CSMapp as a tool will help you narrow currency symbols for trading by determining the strength of a currency which you can use in trading.