The Currencies Heat Map provides a graphical representation of the relative strengths of major currencies relative to others, organizing the data from 20 currency pairs into color-coded results thus producing a clear overview of the whole Forex market.
How do you read a heat map in forex?
The left column represents the base currency, and the top raw represent the quote currency. We will always trade on the base currency against the quote currency. For example GBP/USD – the base currency is the GBP and the quote currency is the U.S. dollar.
How do you analyze a heat map?
You can think of a heat map as a data-driven “paint by numbers” canvas overlaid on top of an image. In short, an image is divided into a grid and within each square, the heat map shows the relative intensity of values captured by your eye tracker by assigning each value a color representation.
Why do traders use maps?
Market mapping is a way for traders and investors to gauge the viability of a given trade or investment. Market mapping can be used to analyse different volatility levels and different prices for individual assets, or it can be used to analyse entire companies.
How is currency strength measured?
The best way to judge a currency’s strength is by observing its value in relation to other currencies over many years. Supply, demand, inflation, and other economic factors will cause changes to a currency’s relative price. It is these changes that ultimately determine the strength of a currency.