H4 Stochastic · Currency Strength Matrix · Complete Reference

Currency Strength Matrix
— Line by Line

Every line inside the Currency Strength Matrix popup explained in full — what it shows, how each currency bias is determined, and what each state means for your trade decision.

Section 01

What Is the Currency Strength Matrix?

The Currency Strength Matrix is a floating analysis popup that opens when you click any pair in the H4 column of the Stochastic Dashboard. Rather than showing technical trade signals for a single pair, it zooms out to the macro level — revealing the live strength or weakness of all 8 major currencies simultaneously, so you can see not just what your pair is doing, but why it is doing it.

How to Open

Triggering the Popup

Click any cell in the H4 column of the Stochastic Dashboard. The Currency Strength Matrix opens centred on the chart using the chart's pixel dimensions to calculate its position. Only one H4 popup can be open at a time — opening a second pair's popup automatically closes the existing one. It is dismissed with the ✕ CLOSE button at the bottom, or by clicking outside the popup area.

What It Shows

8 Currencies + Macro Context

The popup displays the live bias for all eight major currencies — EUR, USD, JPY, AUD, GBP, CAD, CHF, and NZD — each assessed independently across its own configured basket of pairs. Below the eight biases, it shows Risk Sentiment and the Market Regime Engine state, both with a live timer indicating how long the current state has been active.

Design Goal

See the Current Behind Every Pair

When you look at a pair like GBPJPY, you are not just looking at one instrument — you are looking at the intersection of British pound flow and Japanese yen flow. The Currency Strength Matrix makes those individual flows visible. Strong GBP + Weak JPY is a very different trade environment to Strong GBP + Strong JPY, even if the pair chart looks identical. The matrix reveals the current that's driving price.

Voting System

EMA Crossover Basket Votes

Each currency bias is calculated by comparing the D1 close to the D1 open across a configurable basket of pairs. Each pair casts a vote: a bullish candle for the base currency = Strong vote, a bearish candle = Weak vote. The votes are tallied across the basket. A majority of one direction produces Strong or Weak; balanced or insufficient votes produce Neutral.

Section 02

Popup Anatomy

The Currency Strength Matrix is a single-panel popup. It lists all 8 currency bias lines from top to bottom, followed by a visual gap and then the two macro synthesis lines — Risk Sentiment and Market Regime. The title bar automatically shows the pair you clicked, making it easy to cross-reference each currency's role within that specific pair.

Popup Preview

Example: Strong JPY + Weak AUD = Risk-Off → Defensive Regime. Entering GBPJPY long here means fighting the JPY safe-haven current and the Risk-Off tide simultaneously.

Panel Structure

Title Bar

[Symbol] — Currency Strength Matrix

Fixed 30 px header bar. The clicked pair's symbol auto-populates the title. Default styling: Gold text on dark slate-gray background. Fully configurable via H4_Popup_Header_* settings.

Lines 1–8: Currency Biases

EUR · USD · JPY · AUD · GBP · CAD · CHF · NZD

Eight individual currency bias readings stacked vertically with 18 px spacing. Each line reads XXX Bias: [Strong / Weak / Neutral], colour-coded per state. Together they form the complete currency flow map for the current market.

Lines 9–10: Macro Synthesis

Risk Sentiment · Market Regime Engine

Two synthesised macro-level readings derived from the currency biases above. Both include a live timer showing how long the current state has been active. Risk-Off and Defensive states display in red; Risk-On and Trending in green; Neutral and Mixed in gray.

Close Button

✕ CLOSE

Dark red dismiss button spanning the full popup width. Also dismisses by clicking outside the popup bounds on the chart. Opening any other H4 popup automatically closes the current one.

Section 03

Currency Biases — Every Line Explained

The eight currency bias lines are displayed in the order shown below — exactly as they appear top to bottom in the popup. Each bias reflects the current directional vote across that currency's configured pair basket, colour-coded green for Strong, red for Weak, and gray for Neutral.

EUR Bias
Euro Basket Bias
Tracks euro strength and weakness by tallying D1 directional votes across major EUR pairs — EURUSD, EURGBP, EURJPY, EURAUD, and EURCHF. EUR is the base currency in all five pairs, so a rising pair = Strong vote, a falling pair = Weak vote. The euro is the world's second most-traded currency and reflects European economic health, ECB monetary policy, and risk appetite for non-dollar alternatives.
Strong — EUR broadly appreciated across the basket today
Weak — EUR broadly depreciated across the basket today
Neutral — Mixed or balanced basket votes, no clear direction
USD Bias
US Dollar Basket Bias
The dollar's strength is assessed across six major USD pairs — EURUSD, GBPUSD, AUDUSD, NZDUSD, USDJPY, USDCAD, and USDCHF. Because USD is the quote in EUR, GBP, AUD, and NZD pairs but the base in USD/JPY and USD/CAD, the voting logic accounts for each pair's structure automatically. The US dollar drives approximately 88% of all forex transactions — when USD tilts strongly in one direction, it creates a broad market current that affects virtually every pair.
Strong — Dollar broadly appreciating; global liquidity is flowing into USD
Weak — Dollar broadly depreciating; capital rotating away from USD
Neutral — No dominant dollar direction; mixed basket votes
JPY Bias
Japanese Yen Basket Bias
Monitors yen strength across major JPY pairs — USDJPY, GBPJPY, EURJPY, AUDJPY, and NZDJPY. Because JPY is the quote currency in all of these pairs, a falling pair = Strong JPY vote (yen appreciating), and a rising pair = Weak JPY vote. The yen is the quintessential safe-haven currency. When markets turn defensive, capital flees risk assets into yen. JPY bias is therefore a direct read on whether fear or greed is currently driving the market — making it critical for volatility expectations and the Risk Sentiment calculation.
Strong — Yen broadly strengthening; safety demand is elevated, risk-off conditions likely
Weak — Yen broadly weakening; risk appetite is present, risk-on conditions more likely
Neutral — No dominant yen direction; sentiment is mixed
AUD Bias
Australian Dollar Basket Bias
Tracks Aussie dollar strength across major AUD pairs — AUDUSD, AUDNZD, AUDCAD, and AUDJPY. AUD is the base in all these pairs, so a rising pair = Strong vote. The Australian dollar moves closely with commodity prices and global risk appetite. When traders are comfortable taking risk and betting on growth, AUD strengthens. When sentiment turns defensive, AUD weakens. AUD bias therefore acts as a real-time barometer of market confidence — and in combination with JPY bias, directly determines the Risk Sentiment reading.
Strong — Risk appetite present; commodity demand elevated, growth-positive conditions
Weak — Defensive positioning; commodity demand soft, growth expectations low
Neutral — Mixed sentiment; no clear risk appetite signal
GBP Bias
British Pound Basket Bias
Measures pound strength across major GBP pairs — GBPUSD, GBPJPY, EURGBP, GBPAUD, GBPCAD, and GBPCHF. The British pound is a high-beta currency — it tends to amplify broader risk sentiment moves rather than lead them. Strong GBP often accompanies risk-on conditions. Weak GBP signals risk-off pressure or UK-specific headwinds (political uncertainty, divergent BoE policy). Tracking GBP bias helps determine whether the pound's cross-pair moves are driven by sterling itself or by the other currency's flow.
Strong — Pound broadly appreciating; risk-on or UK-positive conditions supporting sterling
Weak — Pound broadly depreciating; risk-off or UK-specific headwinds
Neutral — No dominant pound direction; GBP pairs are mixed
CAD Bias
Canadian Dollar Basket Bias
Monitors Canadian dollar strength across pairs such as USDCAD, CADJPY, AUDCAD, EURCAD, and GBPCAD. CAD is closely correlated with crude oil prices and North American economic data (particularly US data, given the trade relationship). A strengthening CAD typically indicates rising oil prices or positive Canadian economic surprises. A weakening CAD often reflects lower oil prices, risk-off sentiment, or BoC policy divergence from the Fed. CAD bias helps context pairs containing the loonie and provides a commodity sentiment cross-check alongside AUD.
Strong — CAD broadly appreciating; oil prices supportive or Canadian data positive
Weak — CAD broadly depreciating; oil drag or risk-off flows dominant
Neutral — Mixed CAD signals; no dominant directional theme
CHF Bias
Swiss Franc Basket Bias
Tracks Swiss franc strength across pairs including USDCHF, EURCHF, GBPCHF, AUDCHF, and CHFJPY. Like the yen, the Swiss franc is a safe-haven currency — it tends to strengthen when markets turn defensive and global uncertainty rises. Strong CHF alongside strong JPY is a powerful confirmation of risk-off conditions and potential market stress. Conversely, a weak CHF alongside a weak JPY is a strong signal of genuine risk appetite. Monitoring CHF provides a second-confirmation of what JPY is telling you about market sentiment.
Strong — Safe-haven demand present; CHF and JPY often strengthen together in risk-off environments
Weak — Risk appetite present; capital moving away from safe havens
Neutral — No dominant safe-haven flow in CHF
NZD Bias
New Zealand Dollar Basket Bias
Measures New Zealand dollar strength across pairs such as NZDUSD, NZDJPY, AUDNZD, EURNZD, and GBPNZD. The kiwi dollar shares similar risk characteristics to AUD — both are commodity-linked, high-beta currencies sensitive to global risk appetite and growth expectations. NZD has particular exposure to dairy prices and Asian trade flows (especially China). Comparing NZD bias alongside AUD bias gives a richer picture of commodity-currency and risk-appetite trends: when both are strong, the risk-on signal is broadly confirmed across the Pacific commodity bloc.
Strong — NZD broadly appreciating; risk appetite and commodity demand supporting the kiwi
Weak — NZD broadly depreciating; defensive positioning or commodity headwinds
Neutral — Mixed NZD signals; no clear directional theme
Section 04

Risk Sentiment & Market Regime Engine

Below the eight individual currency biases, the popup synthesises JPY and AUD readings into two macro-level states — Risk Sentiment and Market Regime. Both update live and display a timer showing how long the current state has been in effect.

Risk Sentiment
Market-Wide Risk Appetite State
Derived directly from the JPY and AUD bias combination. This line synthesises the two most reliable sentiment proxies in the forex market into a single actionable reading of whether traders are currently seeking growth and risk, or protecting capital.
Risk-On — JPY is Weak AND AUD is Strong. Growth currencies are rising, risk assets in favour. Trends are more likely to extend. Displayed with timer: On (0h 34m)
Risk-Off — JPY is Strong AND AUD is not Strong. Safety demand dominates. Sharp moves, quick reversals, and volatility spikes become the norm. Displayed as: Off (0h 22m)
Neutral — Everything else — JPY/AUD signals are mixed or balanced. Normal or choppy conditions with no dominant sentiment driver.
Market Regime Engine
Overall Market Environment State
Compresses USD flow, JPY safety demand, and Risk Sentiment into one single environment label. Think of it as the "weather system" for the entire forex market — it doesn't predict what will happen, it tells you the conditions you are currently operating in so you can calibrate your approach accordingly.
Trending — Risk-On + JPY Weak + USD has a directional vote. Directional continuation is more likely. Trends persist longer, pullbacks are shallower, breakouts follow through. Displayed as: Trending (1h 12m)
Defensive — Risk-Off + JPY Strong. Fear-driven market. Sharp moves, fast reversals, and elevated volatility dominate. Safe havens outperform, correlations break down. Displayed as: Defensive (0h 22m)
Mixed — Everything else — range, chop, or rotation. No dominant macro force. Price action driven more by individual pair technicals than by broad flows.
About the Timers: Both Risk Sentiment and Market Regime display a timer in the format (Xh Ym) showing how long the current state has been active. The timer resets each time the state changes. A freshly established state (short timer) typically carries more momentum and conviction behind it; a state that has been active for many hours may be approaching a potential transition. Use the timer to calibrate whether you are catching the start of a macro move or arriving late.
Section 05

Reading the Currency Flow

The real power of the Currency Strength Matrix emerges when you read it holistically — not as eight separate biases, but as an interconnected map of where money is flowing and where it is flowing away from. The following guidance explains how to interpret the matrix in context.

Understanding Currency Alignment for Your Trade

When you look at the matrix before entering a trade, identify which two currencies make up your pair and check both their biases. The interaction between the two determines whether broader flows are helping or hindering your trade direction.

Tailwind The currency you are buying is Strong AND the currency you are selling is Weak. Broader market flow directly supports your direction. Expect smoother movement, stronger follow-through, and less choppy price action. Example: Long EURUSD with EUR Strong + USD Weak — the full weight of the market's current is behind the trade.
Headwind The currency you are buying is Weak OR the currency you are selling is Strong. Broader flow opposes your direction. The trade requires tighter stops, smaller position size, and more precise timing. Headwinds don't mean "don't trade" — they mean "trade smarter." Example: Long GBPJPY with Strong JPY — you're fighting the safe-haven current; a valid setup still works, but size down.
Neutral One or both currencies show Neutral bias. No strong push either way. The pair's movement depends more on its own technical structure than on broader currency flow. Trade the technical setup on its own merit, size normally, and watch individual pair price action rather than the macro current.

The Three Macro Anchors: USD, JPY, and AUD

While all eight currency biases matter, USD, JPY, and AUD carry outsized macro significance — they represent three distinct market forces that drive the entire forex landscape. Understanding what each one signals helps you interpret the rest of the matrix in context.

USD Liquidity & Reserve Currency. The dollar is the foundation of global forex — approximately 88% of all transactions involve USD. When USD strengthens or weakens across the board, it creates a tide that lifts or lowers most pairs. A strong USD tightens global liquidity and often pressures risk assets; a weak USD loosens conditions and tends to fuel risk-on moves. USD bias reveals whether you are trading with or against the world's primary liquidity flow.
JPY Safety Demand & Risk-Off Proxy. The yen is the quintessential safe-haven currency. When fear rises — whether from geopolitical risk, economic uncertainty, or equity market stress — capital flows into JPY as protection. Strong JPY is the market's alarm signal: caution, volatility, and sharp reversals are ahead. Weak JPY is the all-clear signal: risk appetite is present and capital is flowing into growth assets. JPY bias is your most direct read on market sentiment.
AUD Commodity & Risk Appetite Gauge. The Australian dollar moves with commodity prices and global risk appetite. When growth expectations are positive and traders are comfortable taking risk, AUD rises. When sentiment turns defensive or commodity demand falls, AUD weakens. AUD bias provides the growth-side confirmation that JPY bias provides the fear-side — together they power the Risk Sentiment reading at the bottom of the popup.

Adapting Your Approach to Each Market Regime

The Market Regime Engine is not a trade signal — it is an environment descriptor. Use it to adjust your execution approach and risk management before placing a trade.

Trending USD and risk flows are aligned in one direction. Directional continuation is the dominant behaviour. Trends persist longer, pullbacks are shallower, and breakouts follow through with conviction. Approach: Let winners run, add to winning positions, use wider stops to survive normal pullbacks, prioritise Runner trade types.
Defensive JPY strength dominates and risk-off sentiment prevails. Sharp moves, quick reversals, and volatility spikes are the norm. Safe havens outperform and correlations break down — pairs that normally move together may diverge unexpectedly. Approach: Use tighter stops, reduce position size, take profits faster, avoid chasing extended moves, favour short-term scalps over runners.
Mixed Conflicting signals, choppy behaviour, or balanced conditions. No dominant macro force is in control. Price action is driven more by individual pair technicals than by broad flows — which means your chart analysis carries more weight here than it does in a Trending regime. Approach: Trade each setup on its own technical merit, rely on structure and support/resistance, manage expectations for noise and false breaks, size normally.
💡 How to Use the Matrix Before Entering Any Trade: Open the Currency Strength Matrix for the pair you are about to trade. Find the two currencies that make up your pair. Check if the one you are buying is Strong (or at least Neutral) and the one you are selling is Weak (or at least Neutral). Then check the Risk Sentiment and Market Regime to confirm the macro environment supports your trade type. Strong EUR + Weak USD = favourable environment for EURUSD longs. Weak EUR + Strong USD = headwind for EURUSD longs — consider waiting, reducing size, or standing aside entirely. The matrix doesn't predict the next move. It reveals the current flow, so you trade with the market, not against it.