Every forex trader knows the cycle: endlessly clicking through 28 currency charts, trying to assemble a coherent picture of the market from a mosaic of isolated trends.
You see EURUSD trending up, but what does that truly reveal? Is the Euro fundamentally strong, or is the US Dollar weak? Could both be strong, with the Euro just slightly stronger? A single chart doesn’t provide the full story; it only gives you a fraction of the information you need.
This article introduces a methodical strategy that cuts through the noise. It simplifies your analysis by focusing on the strength of individual currencies, allowing you to see the entire market’s dynamics from a single, powerful chart.
1. The Power Shift: From Trading Pairs to Trading Currencies
The core principle of this strategy is a fundamental shift in perspective: stop analyzing currency pairs in isolation and start assessing the strength of individual currencies. The goal is to identify a strong currency and a weak currency and then trade that pair, buying strength and selling weakness.
This approach looks at the 8 main currencies (USD, EUR, JPY, GBP, CHF, AUD, CAD, NZD) as individual entities. By understanding which currencies are gaining momentum and which are losing it, you can identify the real drivers behind market movements. This approach avoids the common trap of trading two moderately weak currencies against each other, which often results in choppy, unpredictable price action.
Key Insight: It makes no sense to sell a weak currency against another weak currency only because it is a little weaker. We have to find out which currency is strong and trade strong against weak!
2. The “One Chart” Advantage: Gaining Full Market Clarity
The Currency Strength28 strategy directly solves the problem of information overload. Instead of needing to analyze 28 separate charts to understand the market, you can use a specialized indicator like the Advanced Currency Strength28 Indicator to see the relative strength of all 8 major currencies—and by extension, all 28 pairs—from one screen.
This is a powerful advantage. It not only saves an immense amount of time but also provides a comprehensive, at-a-glance market view. You can instantly see where the money is flowing, which currencies are in strong trends, and which pairs offer the highest probability setups—all without leaving your main chart.
A EURUSD chart will show you only 1/28th of the market so you only have a small amount of information to base your trading decision on… By using the Advanced Currency Strength28 Indicator indicator you can get all that information from just the one chart.
3. The Signal: How to Spot a “Double-GAP”
The strongest and most reliable trading signal in this system is the “double-GAP” (dGAP). To understand it, we first need to define a “GAP.”
A GAP is a strong, decisive move in a single currency’s strength. More specifically, it is a move up or down that occurs over the last 1 bar on higher timeframes or 2 bars on lower timeframes at a defined angle on the indicator.
A double-GAP (dGAP) is the optimal trade setup. It occurs when the two currencies in a pair show strong GAPs moving in opposite directions simultaneously. The double-GAP signifies a powerful “push-pull” dynamic across the market, where one economy’s currency is being aggressively bought (push) while another’s is being aggressively sold (pull), creating a clear and decisive path for the resulting pair.
IF EUR GAP is down and NZD GAP is up = sell EURNZD
This dGAP signal is far more potent than a “single GAP,” where the momentum is one-sided (e.g., Currency A is flat and currency B is strong) or mismatched (e.g., Currency A is weak and currency B is simply weaker). Those weaker setups are far more vulnerable to pullbacks and reversals. The double-GAP, by contrast, confirms that strong momentum is pushing both currencies in opposite directions, creating a higher-probability trading opportunity.
Watch the Double-GAP Strategy in Action
Conclusion: Trade with Confidence, Not Confusion
The Double-GAP strategy provides a methodical, rule-based approach that replaces market confusion with analytical clarity. By focusing on the underlying strength, you align your trades with the market’s natural equilibrium—where for every currency being strongly bought, another is being strongly sold.
What could you achieve if you stopped guessing at pair movements and started trading based on true currency strength?
📚 Further Reading & Resources
Deepen your understanding of currency strength trading with these resources: