- April 2014
- Posted By Ninoslav
- 0 Comments
Forex market a place where you come across many trading strategies and find some of the terms which are useful for your trading trend. If you are an agent/broker or yourself an investor in trade market doesn’t make a difference when it comes to a choice when aid is required. You may have been gone through the term Absolute currency strength (ACS) during trading that works like indicator.
ACS Forex flow indicator:
FX indicators are signals which are used to alert and inform traders while trading in real time. These indicators are basically meant for buying strong currency and selling weak currency. Whenever, there is rise in currency pair these signals indicate make it possible to view original move, so that you can be able to make the right choice to select active currency pair in real time period.
FX flow indicators are typically ACS and RCS, where in most of the time ACS is used as supporter for RCS indicators. In Forex market, for technical analysis this technical indicator Absolute currency strength is used to calculate gain/loss percentage also intend to form charts depending on past and present currency gain/loss based on closing price of real trade time.
Advantage of ACS:
- If you are trading on pattern like divergence, cross and trend break than ACS indicator can be used.
- If you are trend follower traders, than its sends information to you to get know which currencies are on demand.
- Useful for spread traders, where trader can use this instrument to see currency move reaction related to other instruments as well.
- Scalpers can use both relative and absolute strength while trading to having a look on strength trends.
Moreover, combining ACS and RCS indicators can give entry/exit signal while you are making currency trade. Absolute currency strength totally based on mathematical momentum gives a choice out of 8 major currencies, to select by creating 28 cross tradable currency pairs. Similarly, you must be thinking of how the balance of trade conducted in trade market? To overwhelm trades.