Currency strength indicators can help you identify which currency pairs are suitable for different trading strategies. Currency strength indicators are tools that help traders identify which currencies are strong and which are weak in real-time or over a period of time.
About: Currency strength is a measure of how valuable a currency is compared to other currencies. For example, if a currency pair is in a strong trend, you can use a trend-following strategy and look for trade setups that align with the direction of the trend1. They can use different methods to calculate currency strength, such as relative strength index (RSI), true strength index (TSI), or linear regression slope (LRS). It can be calculated based on different factors, such as purchasing power, interest rates, or economic performance.