Trading the STRONG against the weak!
The Currency Strength Index (CSI) is a technical indicator to chart the strength momentum of the 8 major currencies. (EUR, GBP, AUD, NZD, USD, CAD, CHF, JPY)
The indicator is based on mathematical decorrelation of 28 cross currency pairs.
It uses the percentage difference in Linear-weighted averaging (LWMA) of the closing prices.
If X/Y currency pair is in an uptrend, it shows if it is due to X strength or Y weakness.
Imagine what it would be like to monitor the performance of all 28 currency pairs on one chart.
To see instantly which pairs are trending, and if so how strongly.
Advantages for trading strategies
The Currency Strength Index (CSI) can be applied to any chart for any currency pair.
The chart does not influence or affect the appearance or performance of the indicator.
For example you can apply the indicator to a GBP/USD, a EUR/USD, or a USD/CHF, or any other pair.
The indicator will display in an identical way on each chart.
On the first time, you may need to switch the chart timeframe a few times to allow all the indicator data to load.
Currencies that are significantly sloping away from each other are candidates for trend trading.
Currencies that run paralel to each other are ranging and can be traded from the top of a band or channel to the bottom with confidence.
Using the indicator in multiple timeframes is an excellent way to see whether a currency is rising or falling across several timeframes, adding a further dimension to your analysis, and allowing you to quantify the risk on any trade in a more detailed way.
The Currency Strength Index (CSI) doesn’t tell you when to enter a trade, it only helps you to filter for potential currency pairs to trade.
You can tweak the Currency Strength Index (CSI) to adapt to different trading timeframes.
Have a look here: https://www.mql5.com/en/market/product/16251Forex_Spread_Meter
MetaTrader 5 indicator that displays the spread meter on the chart.
Converts trendlines into horizontal lines.Rapid Doji EA
The Rapid Doji EA is a fully functional MetaTrader 5 Expert Advisor that uses pending orders (one BUY and one STOP) around each Doji candlestick on the Daily (PERIOD_D1) time frame. This is a great introduction to how to build a simple, profitable EA. You can watch, step-by-step, how this EA was built via YouTube videos. See the link in the code for details.