NZD and USD in Focus on the Currency Strength Indicator
Thanks to everyone for coming along to our forex webinar for the London session earlier, where our focus was the euro & eurodollar, particularly with some pretty heavy option expiry strike prices due up later today. Also in view was the kiwi which was in a similar state to the British pound ahead of Chancellor Osborne’s autumn statement. In other words totally beaten down across multiple time frames, and despite various efforts to rise kept falling back into oversold territory. Interesting to see the Kiwi (white line) has now moved off the floor on the 30 & 60 min CSI.
Also note the USD (the red line) is very overbought, so we need to keep an eye on what it is likely to do the remainder of the day. What happens in our next webinar for the US session is difficult to tell given it was Thanksgiving yesterday, and today is Black Friday. Appreciate it’s not a national holiday, but given many in the US are taking an extended holiday, and we have end of month, not sure what type of price action we are likely to have. Despite this one thing is certain David & I will always have something to say about the markets. Hope you can come along.
NZD and USD often take center stage on the currency strength indicator. This relational tool ranks currencies live. Extremes between them highlight opportunities. Traders spot momentum or reversals fast in NZD/USD.
Why NZD and USD Stand Out
The New Zealand dollar (NZD) is commodity-linked. Dairy and growth drive it. The US dollar (USD) is the reserve currency. Safe-haven and policy influence it. When one ranks high and the other low, NZD/USD shows strong bias. Quantum CSI on MT5 or NinjaTrader flags these quickly.
Relational Opportunities
Strong NZD vs weak USD = bullish NZD/USD. Risk-on sentiment boosts Kiwi. Weak NZD vs strong USD = bearish pair. Safe-haven flows favor dollar. Volume price analysis (VPA) confirms—high volume on moves validates conviction.
VPA and Quantum Insights
VPA adds depth. High volume in direction of CSI extremes shows real momentum. Low volume warns of traps. Quantum matrix reveals relational flows. Trend Monitor aligns entries.
Practical Trading Tips
Focus on NZD/USD when CSI extremes appear. Enter on volume-confirmed moves. Pullbacks with support offer better risk-reward. Anna Coulling’s VPA approach with Quantum tools turns relational strength into disciplined trades.
NZD and USD in focus create clear setups. Quantum currency strength indicator reveals them instantly. VPA with Quantum delivers the edge.
CSI Trading Strategies: Leveraging the Currency Strength Indicator
The Currency Strength Indicator (CSI) is a relational powerhouse for forex traders. It ranks major currencies live by performance. This reveals strength extremes quickly. Traders use CSI for trend, reversal, scalping, and range strategies. Volume price analysis (VPA) confirms conviction—high volume on moves validates CSI signals.
Trend Trading with CSI
CSI shines for trends. Strong currencies (top rankings) pair with weak (bottom) for momentum.
- Select pairs from extremes (e.g., strong AUD vs weak JPY = long AUD/JPY).
- Hold on sustained rankings.
- VPA confirmation: High volume continuation = stay in.
Quantum Trend Monitor aligns direction. This rewards longer holds.
Reversal Trading with CSI
Extremes signal overbought/oversold. CSI flags potential turns.
- Currency at top/bottom too long = exhaustion.
- Enter counter-trend on divergence (low volume at extreme).
- VPA validates: High opposing volume confirms reversal.
Ideal for mean reversion in forex.
Scalping Strategies
Scalpers need fast signals. CSI on lower timeframes shows quick extremes.
- Enter on relational surges (high ranking shift).
- Exit on fading momentum or targets.
- VPA filter: High volume spikes = conviction scalp.
Quantum TickSpeedometer adds speed insight.
Avoiding Ranges and Low-Momentum Pairs
CSI middle rankings = congestion. Currencies moving together show no relative strength—range likely.
- Avoid these for trends.
- Use for premium selling or tunnel binaries.
Low volume confirms indecision.
Practical Tips Across Strategies
Start analysis with CSI. Quantum matrix adds relational depth. VPA always confirms—high volume on CSI-highlighted moves validates entries. Low volume extremes warn of traps.
Anna Coulling’s VPA approach with Quantum CSI turns relational data into disciplined trades. Adapt to your style—scalping, swing, or trend.
The CSI offers versatile strategies. Quantum tools make spotting them reliable. Focus on extremes with VPA confirmation for consistent results.
By Anna Coulling
Creator of Volume Price Analysis