eps ratio”: What Is It and How to Use It in Forex Trading

5 min read

The EPS Ratio Forex trading system is a technical system based on the ratio of earnings-per-share (EPS) to the price of a currency pair. Traders use the EPS Ratio to identify undervalued currencies and moments when a currency is about to start an extended run of strength. The system takes the current EPS and divide the figure with the currency pair’s current price, giving the trader a ratio close to 1. This ratio is used to identify the potential overvalued or undervalued currency pairs. The system also provides technical signals in the form of alerts when a pair is displaying clear signals of a breakout or reversal. This allows traders to make informed trading decisions with greater accuracy and confidence.