This indicator has been developed to identify and display these trends quickly and easily, allowing you to see instantly, those currency pairs which are trending, and those which are not – and in all timeframes, with just one click. The 28 currency pairs are displayed as a fan as they sweep from strong to weak and back again, and this is why we call it the ‘currency array’. All 28 pairs are arrayed before you, giving an instant visual description of those pairs that are trending strongly, those in congestion and those about to develop a trend, all in your chosen timeframe.
The Quantum Currency Array indicator displays all the 28 currency pairs derived from the 8 major currencies as featured in the Quantum CSI namely: USD, EUR, GBP, CHF, JPY, CAD, AUD, and the NZD. In displaying all the pairs in an array, this gives an instant view of their relative trend strength and reveals this relationship in a visual and intuitive manner in three very powerful ways.
First, the indicator displays the 28 currency pairs in a ranked list, ordered by the strength of the trend. The currency pair with the greatest momentum and steepest uptrend appears at the top of the list – in other words the most bullish. The one with the greatest momentum and steepest downtrend appears at the bottom – in other words the most bearish. All the other pairs are then ranked accordingly, and color coded from red at the bottom through to yellow and into green at the top of the ranking table. Currency pairs in congestion appear in the middle of the table and are colored yellow.
Alongside the ranking list is a second column. This signals whether a particular currency pair is approaching an overbought or an oversold state, thereby providing an opportunity to profit from any trend reversal, and get into a strong position early. These states are signaled in two ways. First that a currency pair is approaching such as state, and second when it has arrived at the extreme. These signals are color coded as a dark blue or dark red for the ‘approaching an extreme’, and then bright blue or bright red once the pair is ‘at an extreme’. These are shown as follows:
- If the pair is at an overbought state : OB on a bright blue background
- If the pair is approaching an overbought state : (OB) on a dark blue background
- If the pair is at an oversold state : OS on a bright red background
- If the pair is approaching an oversold state : (OS) on a dark red background
Once any of these signals appears beside a currency pair, it is flagging the potential for an impending change in direction of the trend, which can then be considered further by analysis of the chart. For example, if the EUR/GBP is seen near the top of the table, and beside it is an OB signal, it means that although the uptrend is seemingly strong, the bullish strength driving it may be reaching an exhaustion point, and starting to diminish with a possible change in direction in due course. Time to check this on the charts.
Second, the indicator displays the same 28 major currency pairs as lines that diffuse out creating the array, with varying magnitudes depending on the strength and inclination of each currency pair’s trend. This means the order in which they appear vertically, follows the same ranking in the table alongside, but as a graphical display, instantly, visually and numerically revealing the actual steepness of each currency pair’s trend. In other words, the stronger the trend, the steeper the line. What you are seeing on the array is the directional momentum of all 28 currency pairs on one indicator, and in any timeframe.
Third,It will give you an instant heads up to divergence across a currency complex. The easiest example here is with the Japanese yen. On the array we should expect to see all the currency pairs on either one side of the mid point, or the other. After all, if the flow of sentiment for the yen is universal, then we should see all the yen pairs aligned accordingly, either with selling of the Japanese yen or buying. If not, then we have some divergence, and the flow of sentiment is not universal. If you are trading a pair which is perhaps counter to broad sentiment, then this is a higher risk proposition. The currency array will reveal this instantly and visually, and across all the timeframes with a single click and on ONE chart.