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Vital Currency Strength Indicator MT4

Purpose

The purpose of this indicator is to evaluate individual currencies’ conditions using Stochastic calculations.

In a given timeframe, the indicator will tell the user whether a certain currency is overbought or oversold.


Mechanism

First, the indicator retrieves the needed close, high, and low data from up to seven ticker symbols to generate indices for up to eight currencies.

Next, a Stochastic indicator tool (or “processor”) is used to analyze these index feeds. This processor is configurable in exactly the same way any other Stochastic indicator is configured.

Next, the output of the processor can be smoothed with a moving average. This can be useful to filter out noise and reduce likelihood of “fake-outs”.

Finally, the user will have some visual controls, in order to both permanently and quickly eliminate distractions. Buttons are provided to hide and show plot lines quickly – alternatively, they can be input as booleans.


Inputs List (abbreviated)

Below is a brief walkthrough of the inputs:

  • Moving Average Post-Processing
    • Select whether or not to apply moving average smoothing to your data.
  • Stochastic Processor controls
    • Stochastic period Fast %K
    • Stochastic period Full %K
    • Stochastic period Full %D
  • Post MA Period & Method
    • If applicable, this will control the output smoothing.
  • Calculate [XXX]
    • If enabled, this currency's index will be calculated.
    • At least two currencies need to be calculated. (If only two currencies were calculated, the output should be similar to - if not identical to - that of the same pair.)
    • If, for example, there is no ticker for NZDUSD, set "Calculate NZD" to false.
  • [XXXYYY] Symbol
    • Input string names for all tickers.
    • Some brokers use eccentric symbols (i.e. EURUSDi, EURUSDecn).
  • [XXXYYY] Inception Value
    • Initial value used to calculate 10,000-unit long position for each currency in index calculations.
    • Default values are for end-of-year 2015.
  • Maximum allowable calculations
    • Max number of calculations for index bars calculated.
    • A higher number offers more precedence but makes the indicator slower.
    • A lower number makes the indicator faster but gives less precedence.
    • Default is 1000
  • Line colors can be selected.
  • Plot widths can be set.
  • Stochastic - Full %K Line
    • Optionally, the Full %K Line can be drawn at the same time as the Full %D line.
    • This can be useful for Stochastic crossover analysis.
  • Three levels are drawn on the indicator.
    • Oversold level (default: 20)
    • Midrange level (default: 50)
    • Overbought level (default: 80)
  • Additional levels can be set.
  • Lines can be displayed or hidden upon initialization.
  • Buttons
    • Can be on or off.
    • Can be arranged vertically or horizontally.
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