Let me take this opportunity to explain what Currency Strength Meter (CSM) is and how to take advantage of this amazing little tool, because once you start using it, you won’t take another trade without it! Here’s a brief description of CSM: a standalone program that calculates over 30+ currency pairs in real time and displays an at-a-glance view of the strengths and weaknesses of all major currencies, namely the USD, EUR, GBP, CHF, AUD, JPY, and NZD. The Strength readings vary from 0.0 to 9.0, with 0.0 being the weakest and 9.0 being the strongest (CSM 3.0.6 pictured below).
The color code used in the meter is pretty self-explanatory, with:
BLUE as weak (0.0 ~ 2.0)
YELLOW as normal (2.1 ~ 5.0)
ORANGE as strong (5.1 ~ 7.0)
RED as critical (7.1 ~ 9.0).
How To Use Currency Strength Meter?
There are many uses for the CSM, watch videos above to find out more:
One of the best uses for me is to gauge market condition before and after an economic news release. I like to look at the market and try to find the best pair(s) to trade prior to the release; for instance, look at the meter below (CSM 3.0.6 shown):
Now let’s say we are getting the Australian Retail Sales figure in just under 5 minutes, and the meter is showing AUD reading at a 6.8. If the news comes out favoring AUD, the best choice would be to BUY AUDCHF, since it has the best match up, with AUD at 6.80 and CHF at 3.00; if the news is negative for AUD, then the best choice would be to SELL AUDNZD since NZD is at 8.0.
By adjusting the pairs you trade during news releases, you can definitely add 10 ~50 pips more than just selecting a default pair, such as the AUDUSD.
How Does The Meter Calculate Currency Strength?
Here’s a quick formula on how the meter is calculated…
(PIPS / [DAILY HIGH-LOW] ) * BIS Weighted Formula + (PIPS / [DAILY HIGH-LOW] ) * BIS Weighted Formula… Then divide by Number of Pairs.
PIPS = Amount of pips this pair is at in reference to the daily range. If EURUSD is at 1.3500 and the daily range is 1.3450 to 1.3550, this figure would be 50.
Daily HIGH-LOW = This is the Daily High/Low range for the currency pair. If EURUSD’s low is 1.3450 and high is 1.3550, the daily range would be 100. The daily range is calculated from 5:00pm EST to 4:59pm EST 24 hour period, standard day for the Forex market,
BIS Weighted Formula = Once you get the reading and based on the pair, you’d multiply that using Bank of International settlement Forex volume distribution list to get the right weight.
+ = Repeat this process for every pair that contains your currency. For instance, the reading of EUR will require the meter to repeat the process 7 times: EURUSD, EURGBP, EURCHF, EURJPY, EURAUD, EURCAD, EURNZD.
Finally, you take the average reading and divide the result by the number of pairs, which is 7.
You repeat the same process for all 8 majors. You also have to keep in mind for reverse calculations as per the naming convention, because sometimes your currency could be either the base or quote currency in a pair, like USD is to USDJPY and EURUSD.
The meter does about 112 calculations per each reading, which is lightening fast considering the amount of pairs it has to go through. The advantage is that it can pinpoint you to the best pair(s) to trade by identifying both weak and strong currencies.
Make sure to watch my above videos and don’t forget to share with me how are you using my CSM.
Thanks,
About Henry Liu
i have download and install the currency meter. However when I start the software it is asking me to register which I did but i am getting this error when i press the submit button ” There is some problem with the connection”
pipshunter, unfortunately this is a known issue and we hope to have this issue fixed on the next revision. In the meantime, you can use the CSM web version located in the CNT homepage.
hey Henry any change to pay with visa my montly subscription.. as l have problem with pay pal account..
thank you
Fernando
Hi Fernando, unfortunately we only have Paypal as our payment processor. However, you could contact our support(at)currencynewstrading(dot)com email to setup for wire transfer.
hi i really like this site, because i can interact with other FX traders, i will like to know where i can download the currency strength meter
Hi Jack, simply click on the Download CSM link: http://www.currencynewstrading.com/csm-3-0-6-currency-strength-meter-download/
I have just downloaded the CSM but having the error message on activation something about no connection or Connection Error.
I suppose it is something I am doing wrong.
Any ideas of what could help me to utilize this program?
Regards
Hi Gideo, this is a known issue and we’ll have a fix for it on the next release. In the meantime, try re-downloading and reinstalling the CSM; or try on a different computer if available. If everything fails, then you can use the CSM web version located on the CNT website.
Why EA was Expired ??
BBbig, we apologize for the inconvenience, check this post for answer: http://www.currencynewstrading.com/questions/ea-expired/
SIR CAN I USE VPS WITH CNT EA? AND HOW CAN I GET VPS FROM U?
Hi Rasheed, Yes, you can use the CNT EA in a VPS; but we do not offer VPS services. You can go online and google up for VPS services.
Dear Henry
Your currency meter is superb that is helping me a lot for successful trading
The market is crazily ranging
I have been having some issues with the registration process in activating my desktop CSM, it is having a connection problem. I have ran it as administrator, made exceptions for the firewall and even turned of the firewall and everything I can think of…I seen some other people have had this issue and was wondering if there has been a fix for this?
Yes this is a known issue, we are going to fix in in the new version. So far we don’t have an ETA yet for the new version, but will make an announcement once it is ready.
Thanks
PS.
Is there a way i could use the CSM in a spreadsheet some how until the new version is released?
Hi Wes, you can use the CSM web version that is located on the right sidebar on http://www.currencynewstrading.com
Thank you
How do I download your currency metre. I have been trying for ages but all I seem to get is advertisments.
Please…..just tell me how what I need to do !!!!!!!
Hi Richard, the CSM download is located at: http://www.currencynewstrading.com/csm-3-0-6-currency-strength-meter-download/
Simply click on the CSM 3.0.6 installation file download link.
Pls, Have been trying to install the CSM for some time now & it’s being giving me an error message “The is a problem with connection”
Can someone help on how I can resole it. Expecting your reply.
Thanks.
Hi Samuel, we apologize for the inconvenience; we are working to fix this issue in the nex release. In the meantime, you can use the CSM web version on our website, located on the right sidebar of our home page and other pages.
Hi, I got a problem with my CSM since last week. Sometimes, it’s just freeze, mostly when one currency reach 0.00 on the CSM.
Please verify the desktop CSM reading with the CSM on this website. If you see discrepancies, then it could be CSM issue.
Hi, I’ve seen comments about a known problem, not being able to “connect” to the meter. I have left this for some weeks but still can’t connect?
Not being able to connect refers to the initial registration process. If you have been able to successfully register for an account, then you should not have any connection problem… Were you able to register?
Henry, whats the best time frame to use the meter with?
I use it mainly to determine the direction of the markets for the day, as the meter resets daily. So I wouldn’t recommend to use it on a fixed timeframe, but instead use it to confirm your entries.
I could not find the download link for this Henry
If you are looking for the download link for the currency strength meter, here it is: http://www.currencynewstrading.com/csm-3-0-6-currency-strength-meter-download/
i wish i had found you and your currency meter months ago Henry . It really is such an asset and I find your CNT website most helpful and informative in the field of trading the news . Many thanks.
Hi Henry
Why are the Sydney and Tokyo session lights always on and the London and New york never light
Perhaps you were never awake during those hours and that’s why you didn’t see the lights?
Henry,
Really enjoy the news feature with alerts on the CSM. One question. I see how to pin the meter itself so that it’s always on top. But I noticed when the news result alerts popup they stay in the background, so that if you have your browser open for example, you don’t see them. Anyway to get them on top???
Thanks,
Bret
they are meant to show on top, could be a programming issue, will double check from our end, but I guess it depends sometimes on Windows
. Glad you like the CSM.
Hi Liu,
1)How to identify the reversal using your strength (in advance)?
2) what time frame of this CSM is calculating?
3) If I am trading biary option,how to determine minimum best expiry time?
4)How to know trending and reversal ?
5) how to know if it is over strength/over falling and about to soar again?
please let me know answer to above to use CSM in a full strength.
Hello, welcome to CNT. Here are some answers to your questions. 1) The CSM is not really meant to identify REVERSALS, it is meant to identify strength and weakness. 2) This indicator calculates the trading day, which is different than the daily timeframe. It looks at the open/close for the day starting from GMT+2. 3) I have no idea how this would work with Binary Options. 4) Once again, this tool is not meant to determine trend or reversal. 5) Once again, this indicator does not determine strength/over falling and about soar again.
Henry i ‘m some how unable to login to new csmeter at point of registration it says when i sign in i have a problem with connection is their a way to fix this?
Please re-download and retry installation. We have seen this issue, but it is very rare. If you are still unable to register, please use the web version in the CNT website in the meantime.
i like your indicator. could it be developed for an android phone?
I think so, but then of course I need to learn how to program android programs first
that’d be awesome. i get used to having the strength meter and feel naked without it.
@henry
Hi,
the csm downloaded is not updating any news on the metal trade platform. i hope am not using the old version of the csm because is showing me no news update till next week. please what should do
Hmm CSM does not need MT4. CNT EA does. If you have issues with CNT EA, then you need to make sure that you’ve followed ALL steps in the installation instructions. That means you need to register for CNT member, enter the user/pass in the appropriate field of the EA. Also you need to enter Suffix if your broker uses suffix. If you still have problems, then let us know.
Hi Henry, I have downloaded the csm on my Metatrader4.
How come the value of the indicator is different from the data shown on this page??
On the page EUR 8.00 JPY 3.20
On indicator EUR 2.00 JPY 6.70
Did you enable all symbols in MT4?
What symbols ?
I have registered and the data changes OK
But it is nit the same as on the website here.
In your MT4 market watch, there is a list of symbols offerd by your broker. To obtain best result, go to market watch and enable ALL symbols to be shown in MT4. Another reason could be that the numbers are off due to the ServerOffSet setting. Make sure you follow the Q&A on the offset setting to get best result. http://www.currencynewstrading.com/questions/how-to-configure-the-offset-setting-in-cnt-ea/
Thanks will follow your advice
Christian – I added a refresh button on the meter. You can click on it just to make sure it is matching the desktop CSM.
where to download option of Currency Strength Meter?
Hmm in the download page? http://www.currencynewstrading.com/csm-3-0-6-currency-strength-meter-download/
Many thanks for early reply.
henry, my csm 3.0.6 has stopped working about 15 minutes ago
CSM is still working. Please restart CSM if you are having issues.
hello mr liu,the guru,pls sir the new CURRENCY STRENGHT METER i download refuse opening.when i wanted to register my account.telling me (problem with loading) pls sir what do i do to rectify this problem
This is a known issue on certain types of Windows configuration. We have marked this issue for future updates. In the meantime, please use the online version of CSM (right on the sidebar).
Thank you so much Henry!!
thank you for this .