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Multi Currency Potency Meter

Introduction

This multi-currency meter measures the relative distances from major currency pairs to a long moving average. The relative distances are used to calculate individual currencies (currency singles). Currency singles represent a specific world economy and are shown on the indicator as a colored line.

The currencies (currency singles) described by this indicator include:

AUD, CAD, CHF, EUR, GBP, NZD, USD, JPY.

The reason to separate individual currencies from currency pairs can be understood from the following example:

Consider a chart of EURUSD, in which prices are rising. Are the rising prices due to the Euro (EUR) economy rising or because of the U.S. Dollar (USD) economy falling — or are both conditions true? The Multi-currency Potency Meter gives a relative measure of the strength and weakness of EUR and USD in this context to make this determination.

After separating into distinct currencies, this indicator then combines the strongest currency singles with the weakest to determine, which currency pairs are the most “potent.” Potent currency pairs have price movement and direction and therefore provide the best instruments to find high probability trades.

This indicator can be placed upon any chart.

Updates occur every second if a tick on the underlying chart has come in.


Disclaimers

Mac & Linux

Do not download this product if you have a Mac.

Wine does not support the Market tab. Do not download this product if you do not have a Market tab in MetaTrader 5.


Documentation

Full documentation in PDF format can be downloaded from the link specified within the indicator.


The Panel

Key Column

The key column shows a graded color “temperature” key. This color gauge is used in the Potency column to specify the currency’s strength relative to the past. The number of colors in the key is variable.


Potency

The relative strength (ranking) of each “currency single” is determined then inserted into the Potency column. These are sorted from highest to lowest. Each currency single is assigned a Key color based upon one of the two methods:

1. The relative strength value relative to current values in the list.

2. Relative strength value relative to prior values. This number is calculated from all values for each bar on the underlying chart.

Values in the Potency column are updated every second based upon real market conditions.

To the right of each currency single in the Potency column, there is a 20x20 pixel box with the line color of that currency.


Optimum Pairs

After the Potency column has been populated, the indicator will choose the strongest and weakest currency singles to combine into the most potent currency pairs. Basically, the currency pair is comprised of the strongest currency pitted against the weakest. These are populated into the Optimum column.


Least Optimum Pairs

The currency pairs at the bottom of the list are currency pairs comprised of currency singles with the least amount of distance between them. These typically define flat markets.


Features

  • H1, H4, D1 chart periods
  • Optimum list shows 28 currency pairs
  • Clicking a currency pair will switch to that chart (if already open) or open a new one
  • Variable number of colors (from green to red) in the Key
  • Ability to auto-resize the indicator to full chart size
  • Values in the Data Window


Parameters

  • Show Grid – show/hide the chart grid
  • Grid Color – when GridOn is true, this specifies the color of the grid
  • Key Based Upon Historical Values – when true, the Potency colors are based upon historical values. When false, the Potency colors are based upon the range of Potency (currency singles) values.
  • Hist. Lookback (42=Week;180=Month;2160=Year) – when the key is based upon historical values, this number tells how many previous bars to use in the calculations for color grades. Only used if there are this many bars are available.
  • Broker Suffix for Currency Pairs – for brokers that use suffixes on symbols
  • Broker Prefix for Currency Pairs – for brokers that use prefixes on symbols
  • Chart Period – chart period. For the full version, these are H1, H4 or D1.
  • Show in Data Window – show values for each currency single in the Data Window.
  • Number of Key Colors – number of Key Colors.
  • Auto Full-Chart Resize – When true, the indicator window will expand to fill the full chart size.


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