Application of the Currency Power Meter indicator in trading
For a fair assessment of the movement vector, it is necessary to compare the indicators of the currency strength indicator, while taking into account the basic direction of the quote.
How to Trade with Currency Strength Meter https://nsbroker.com/investment-strategies/how-to-trade-using-a-currency-strength-meter
For example, when trading the EUR/USD pair, we have the following indicator values: for the dollar, 5.1, and for the euro, 4.7. In this case, the probability of a breakdown is quite high, since the" bearish " strength for the EUR is somewhat more powerful. Based on this example, the use of this tool makes it possible to assess the market potential for pullbacks or breakouts of the price level.
Note that it will be more fruitful to use the CPM indicator paired with a properly configured oscillator, which will show you the oversold market. The length (and, accordingly, the value) of the indicator bar clearly indicates the potential of the traded currency.