Forex Technical Analysis based on experience and research.

Currency score explained

A full explanation in detail of the essence of this overview can be read in the following article:
Introduction to the FxTaTrader Forex Models

The articles on this blog are also looking at individual currencies and not the currency pair(s) exclusively. Many articles have been written with a clear explanation on how to reach the conclusion for the right pairs to trade.

The analysis charts for the currencies shows the Monthly currency score from the weakest number 1 to the strongest number 8. The Currency score is used as an additional source next to the Monthly ranking and rating list to backup decisions made on the TA charts. I will explain in this article how this currency score is realised.
  • The score goes from the weakest which is 1 to the strongest being 8. There are 8 currency pairs so that is why the highest score is 8. 
  • Every first weekend of the month the Monthly Ranking and Rating list is made using the Ichimoku and MACD indicator. One of the variables for calculating the best currency pair is the currency score.
  • The currency score is calculated by determining the outlook, with the mentioned indicators, for each currency against its counterparts.
  • The outlook can be bullish, bearish or neutral for the time frames of  day, week and month.
  • Each time frame has a certain impact on the final score. This is according to a key being applied.
  • This information is generated every week and saved as you can see in the picture below.

With this information it is possible to generate the currency score charts that are available in the articles. An example is added here below.

Currency score EUR/GBP
This information is of high value because it is possible to determine if a currency has a broad support for the condition where it is in when looking at a certain TA chart. In other words, looking at the example here on the chart, if the EUR/GBP is looking weak on a Weekly or Daily chart and the EUR is in general a weak currency against all other currencies and the GBP is a strong currency against all other currencies then the conclusion may be that the Daily and Weekly TA chart should look good for taking short positions. If that is the case then both analysis are in sync which offer better chances. I added here below the Daily and Weekly chart for the EUR/GBP where the above is being confirmed.

Daily chart (Click on the chart to expand)
Weekly chart (Click on the chart to expand)


The roughly explained method here is a part of the strategy that I am using currently for the FxTaTrader Strategy. This method is not used on its own because e.g. money management also plays an important role in the whole. The risks can be high depending on the stop loss placed and experience determining the direction. Although the explanation may seem simple and clear there is always risk involved. I added a disclaimer to my blog for this purpose. I added a disclaimer to my blog for this purpose.

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