The RSI or the Relative Strength Indicator is a momentum indicator like the Stochastic Charts and is an extremely popular tool for determining trend patterns and deciding on entry and exit points in the market. Here is a strategy, to find the best currency pair by using Relative Strength Index to have maximum benefit by using this method.Firstly, select one currency as main which is stable in all pairs. Here, I chose USD as main currency. The time frame which I used in this example is daily and using the default setting for RSI which is typically 14.
The currencies with their daily RSI are explained as follow:
  • (you can see USD is stable in all pairs)
  • (note, We must consider that, those pairs which USD is the main must be subtracted by 100)

  • AUD-USD = 47.27-------------------- AUD = 47.27
  • EUR-USD = 59.33-------------------- EUR = 59.33
  • GBP-USD = 53.97-------------------- GBP = 53.97
  • NZD-USD = 56.97-------------------- NZD = 56.97
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