How is the strength of individual currency calculated?

 

Hi Guys,

I have a little doubt. How is the strength of individual currency calculated from the pair.

If EURUSD = x, USDJPY = y, EURJPY = z


I can immediately say that x*y = z
but after that  i dont really see enough information to calculate the EUR, USD, JPY values separately. A extra condition is required. Can someone explain how this is done?

Regards.

 
Shailesh Mishra:

Hi Guys,

I have a little doubt. How is the strength of individual currency calculated from the pair.

If EURUSD = x, USDJPY = y, EURJPY = z


I can immediately say that x*y = z
but after that  i dont really see enough information to calculate the EUR, USD, JPY values separately. A extra condition is required. Can someone explain how this is done?

Regards.

This guy has an approach
https://www.mql5.com/en/forum/251801

@Mladen Rakic has an approach
https://www.mql5.com/en/forum/247122#comment_7563477

There are many approaches.

 

You might find these articles useful:

https://www.mql5.com/en/users/semsemfx/publications

Simeon Semenych
Simeon Semenych
  • www.mql5.com
Cluster indicators are sets of indicators that divide currency pairs into separate currencies. Indicators allow to trace the relative currency fluctuation, determine the potential of forming new currency trends, receive trade signals and follow medium-term and long-term positions. Theoretical Basis of Building Cluster Indicators...
 
Anthony Garot:

This guy has an approach
https://www.mql5.com/en/forum/251801

@Mladen Rakic has an approach
https://www.mql5.com/en/forum/247122#comment_7563477

There are many approaches.

drayzen:

You might find these articles useful:

https://www.mql5.com/en/users/semsemfx/publications


Thanks guys for those links. I wonder if there are any approaches which do not include moving averages.

 
Take a look at what these indicators plots mean for what you want to achieve , and if they are of value to you i can explain what goes on in the calculations.
Reason: