Methodology
Everything we publish — and every score you see in the tool — comes from the same framework, computed from real market data. No black box, no "trust us." This page explains how each indicator is built, what it draws on, and what its limits are.
Data sources
- Prices and volatility (ATR): Twelve Data, with a historical-volatility fallback derived from ECB price history when needed.
- Interest-rate differentials: FRED (St. Louis Fed). If the data isn't available, the carry component stays neutral rather than being invented.
- Reference exchange rates: Frankfurter / European Central Bank (free, no key).
- Positioning: the COT (Commitments of Traders) report and retail-trader bias.
Each input refreshes on its own cadence (prices every few hours, volatility and macro on longer windows) to reflect the market without hammering the sources.
MRS — Market Readiness Score
What does it measure? Whether conditions favor a trade right now. A 0–100 reading. It doesn't tell you what to buy; it tells you whether the ground is prepared.
Components (weight):
- Volatility / ATR — 30
- Active session — 25
- News calendar — 20
- Macro backdrop — 15
- Positioning — 10
How do you read it? Higher = more favorable conditions. It's a composite, not a crystal ball: it distills several signals into one number so you can decide.
CTS — Carry Trade Score
What does it measure? How much you're paid — or charged — to hold a pair overnight (the carry trade).
Components (weight):
- Interest-rate differential between the two currencies (the engine of carry) — 50
- Active session — 30
- Pair ranking — 20
- News-risk penalty
How do you read it? It runs from "no carry" to "strong." A strong carry is not a buy signal — it's one more piece of context.
FSI — Forex Strength Index
What does it measure? The fear-and-greed thermometer of the FX market. A 0–100 composite.
Components: institutional positioning (COT), volatility, the VIX, retail-trader bias, and some carry and news risk.
How do you read it? From "extreme fear" to "extreme greed." As in other markets, the extremes tend to be the most interesting moments to watch.
FOTSI — currency-strength oscillator
What does it measure? It splits a pair into its two halves so you can see which currency is really pulling. It's built on each currency's TSI (True Strength Index).
How do you read it? When two currencies diverge sharply, the pair between them usually offers the cleanest move.
→ Read the full FOTSI explainer
How we produce our content
Our analysis and explainers are written with the help of language models (AI), always under human oversight and fact-checked against market sources (the economic calendar, news feeds, and the data above) before publishing. We spell this out in our editorial standards.
Every score is computed transparently from the sources cited above. If something looks off, email us at contact@forexcommand.com — we'll look into it.
None of this is financial advice. Trading foreign exchange carries a real risk of capital loss. More about who we are on About.
