Real Time Currency Strength

Real Time Currency Strength

We present a simple and effective indicator of currency strength, which give you the overview of the market situation. The indicator displays strength of eight major currencies and can be viewed in a single indicator window.

Main features

This is a real-time currency strength based on a pool of eight most liquidate major currencies.

That means, for every moment of time, the strength of the currency is related to the pool of eight currency as whole at that moment. Therefore, this currency strength does not need a reference starting point of time for calculation. You can compare the performance of the indicator over the historical events, without any subjective setup.

Parameter

Prefixstring: to adjust symbol name, e.g. “UDA-“ for UDA-EURUSD

Postfixstring: to adjust symbol name, e.g. “.ah“ for EURUSD.ah

CalculationPeriod: this the period used to calculate the pool of eight major currency, suggest period is 24,96 and 384, which will calculated the currency strength movement for short-term, mid-term and long-term. The most significant is the mid-term, i.e. 96, applied on Daily chart for example.

ShowOnlysymbolOnChart: only show the currency related to the symbol of the chart.

USD/EUR/GPB/CHF/JPY/AUD/CAD/NZD: enable each currency

EnableSmoothLine: to a line smoothing by moving average.

SmoothNN: the unit used for line smoothing moving average

Theory and Implementation

Do understand, the currency strength related to the pool of eight major currency is a relative long-term phenomenon, it closely related to economy, political and world financial situation.

Instantaneous sharp movement are due to short-time imbalance of supply and demand, it is not the scope covered by this indicator for my initial development. Interested user could do some research on it.

As suggested, apply on Daily chart, attach 3 indicators with CalculationPeriod of 24,96 and 384 as show on chart. Period 24 shows short-term, 96 shows mid-term and 384 shows long-term. Focus on mid-term which is the main currency strength movement.

Apply on the chart of selected symbol, and turn on ShowOnlysymbolOnChart, it will only show the strength of the currencies related to the symbol. E.g. see the chart of USDCAD, the movement of the currency is manly due to the movement of USDx, rather than CADx.

Please give your valuable feed back for me to improve the indicator.