We believe that LeverageFX's Statistical Balance Point Heatmap is one of the most powerful and useful tools for trading the Forex.
It shows you:
- How strong or weak the currency you are trading is against the other non USD currencies.
- 11 Shades of Green (Strong) or Red (Weak) show you the degree of strength or weakness
- See how the Strength or Weakness of the US Dollar is compared to the EUR, GBP, CHF, JPY, and AUD. We show how the US Dollar strength or weakness will affect the currency being traded.
- Gold is an incredible leading indicator and when Gold is strong the US Dollar is normally weak and vice versa.
In the example below USD/CHF you can see on the right that the CHF is mildly stronger (light green) than the EUR and GBP, about even against the JPY and goes from mildly strong to mildly weak against the CAD. On the left of the chart the US Dollar is not strong nor weak against the EUR, GBP, CHF, JPY and is strong against the AUD. Gold is going down which causes the US Dollar to go up thus its colored green.
As the market consolidates and goes sideways you can see the US Dollar is getting weaker against the EUR, GBP, CHF, JPY and AUD and gold is having a negative impact on the US Dollar. We feel that whenever you see the US Dollar getting weak against all the other currencies it is a SAFE sell. Shorting the USD/CHF the market falls 65 pips!
Whenever you see all Green or all Red it is as close to a 100% Probability Trade you will EVER Find!
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