Currency Strength Ribbons
- Indicators
- Version: 1.0
- Activations: 5
Currency Strength Ribbons shows the eight major currencies - USD, EUR, GBP,
JPY, CHF, CAD, AUD and NZD - as smooth lines in one window, each measured
against all the others at once from the 28 pairs that link them.
HOW IT DIFFERS
Most strength meters add up pair changes one pair at a time. That counts
every move twice: when EURUSD rises, the euro gets full credit and the dollar
full blame, whatever the other 26 pairs say about which of the two actually
moved.
Currency Strength Ribbons solves all 28 pairs together. Each currency gets one
level, fitted so that every pair's price is explained by the difference
between its two currencies. A pair's move is then shared between its
currencies according to the rest of the market, instead of being counted
twice. With all 28 pairs the result is exactly each currency's average move
against the other seven. If your broker lacks a few crosses, the remaining
pairs still give a consistent answer.
WHAT YOU SEE
- Eight strength lines, drawn smooth and anti-aliased, with the chart
symbol's two currencies drawn thicker
- A ranking panel: strongest to weakest, with the value and a bar centred
on zero
- A timeframe table beside the ranking: the same measure on M15, H1, H4 and
D1 (or timeframes of your choice), each cell coloured by direction and
size, so a currency moving on every scale stands out at a glance
- Widest pairs: the pairs whose two currencies sit furthest apart, with each
pair's own price change on the chart and on every timeframe in the table
- Currency labels at the right edge of the lines that never overlap
- Light and dark themes chosen automatically from your chart background
SETTINGS
- Measure strength from a number of bars back, from the start of the day,
or from the start of the week
- Percent scale - the currency's average % change against the other seven -
or volatility-adjusted scale in standard deviations, which puts quiet and
volatile currencies on the same footing
- Optional smoothing, line widths, colours, panel corner and font
- Broker symbol prefixes and suffixes (EURUSD.r, EURUSDm, ...) detected
automatically
- Alerts on closed bars: a new strongest or weakest currency, or a line
crossing a level - pop-up, sound, push notification or email
FORMULAS
Levels: minimise sum over pairs (v_base - v_quote - ln price)^2
subject to sum of v = 0
Percent: S = 100 * 8/7 * (v_now - v_then)
Adjusted: Z = (v_now - v_then) / (sigma * sqrt(n))
sigma = one-bar volatility of the level, n = bars between
The values were checked against an independent recalculation from raw pair
closes outside MetaTrader. Across 865 hourly bars the largest difference was
0.00000000005.
HOW TO USE
1. Attach it to any chart - a major pair, gold, an index. It finds the 28
pairs by itself.
2. The first load downloads the history of 28 symbols and takes a few
seconds. The panel shows the progress.
3. Read the ranking and the timeframe table together. A currency strong in
every column is moving on every scale; one strong only on the chart's
timeframe may just be a short swing.
NOTES
- Closed bars never change; only the forming bar moves.
- Your broker must offer the major pairs. Any that are missing are listed
in the panel, and the rest are still used.
- In the Strategy Tester the first run downloads the history of all 28
pairs, which can take a while.
- The eight values are in buffers 0-7 (USD, EUR, GBP, JPY, CHF, CAD, AUD,
NZD) for use from your own programs, and in the Data Window.
- Currency strength describes what has happened. It is not a trading signal
by itself and does not predict where prices go next.
