In this video we explain how to isolate out the currency pair using the currency strength indicator, and then to add further focus to the chart by including the currency index in our trading work-space.
In this example it’s the GBP/JPY which is our focus, and on the currency strength indicator all the other currencies have been turned off, allowing us to see instantly and clearly where the two currencies are in their journey. This can be done easily and quickly using the toggle buttons on the indicator.
Here we can see the Yen is rising strongly and the British pound is falling strongly and so developing the strongly bearish trend we see on the chart. In other words the perfect combination, where we have strength in one currency reinforced with weakness in the other. This is confirmed by the trend monitor indicator, the support and resistance indicator and of course volume.
Finally to help focus further on this pair, we have added the yen index, which offers another view of the Japanese yen, but this time on a chart, and so helping to provide a further view of the currency we are focused on in our trading position.