How To Use A Forex Heat Map

Forex Heat Map

Classic Forex Heat Map
Classic Forex Heat Map

The Forex Heat Map tool is a table that allows us to visualize the performance of a currency against another currency in real-time, by measuring the daily change of two currency pairs in percentage and colors.

How does it help us?

While we consider to buy or sell a specific currency, we will want to measure his performance against other currencies, sometimes, we can assume that one currency value will increase against another currency, this could be different if we decide to trade against other currency.

We can trade Forex only as a pair of currencies,
An exchange rate is a price at which two currencies can be exchanged against each other.

For example- The USD(U.S Dollar) went down by -0.68% against the EUR(Euro), and on the same day, the USD went up by 0.3% against the JPY(Japanese Yen).

==>Click Here to use Forex Heat Map tool<==


How to read the Forex Heat Map

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.

Heat map Base currency/Quote currency
Base currency/Quote currency

Heat Map Colors

Green– represents an increase of the base currency value against the quote currency.

Red– represent a decrease of the base currency value against the quote currency.

Grey– neutral, no change of the base currency value against the quote currency.

Example

GBP/USD increased by 0.35%
GBP/USD increased by 0.35%

GBP/USD – The Great British Pound has increased by 0.35% against the U.S Dollar by 0.35% in the past day, and also, the GBP had decreased by -0.19% against the EUR(Euro) at the same day.


Summary

The Heat Map will show you the daily change of one currency against other currencies, however, using only technical analysis cannot help you determine whether a trend will continue or not.

It is recommended combining this information with other technical analysis tools as well as fundamental analysis of economies and currencies, and that will help you to make a proper decision.

Are you using the forex heat map? did you found this article useful? do you have any questions?

Stay tuned and share your opinion by commenting below.

5 thoughts on “How To Use A Forex Heat Map”

  1. Thanks for this post, the forex heat map looks very interesting. I was trying to trade in forex some years ago. Back then they did not have any tool like the heat map. It was all in graphs and numbers which could be quite complicated. I really like the colour code on the heat map. I notice the colours could be of a lighter red or a lighter green depending on what the currency is doing. 

  2. Nice and beautiful Forex material. I know other sites that provide this currency pairs strength as against each other. But this Forex heat map is awesome. I’m a technical trader I use price action to analyse daily strength of other pairs. But this application will be helpful when you are trading some pairs like EURAUD, EURGBP etc. If you are not very careful you will be trading against a major trend. Daily candle analysis can be made easy with this application. Also I see success in trading some using Forex heat map. But caution needs to be taken because nothing is 100% sure in Forex. 

    • Hi Tsquare,
      It is very important to trade wisely and carefully, therefore, combining different trading techniques together will help you to launch better trades.

  3. Can I use this for myself or do I need to go through a company to use it? I’ve never tried trading currency but now I’m intrigued by the idea.

    The link you have in the middle of the article just sent me back to the same page. Is there a website I can go to that has a updated heat map?

    Where can I get more data on buying and selling currency?

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