Tick volume weighted currency
- インディケータ
- Nikolay Tyumin
- バージョン: 1.0
Unlike classic indicators that analyze a specific currency pair, this tool analyzes and compares the individual strength of each base currency against all other major currencies in the market.
How the algorithm works:
The indicator calculates the strength of 8 major currencies (USD, EUR, GBP, AUD, NZD, CAD, CHF, JPY) by analyzing 28 currency pairs. Instead of using a standard price delta, it calculates the quote increment for each bar and multiplies it by the tick volume. The strength is then smoothed over a specified period (AveragingPeriod) and normalized to a scale from 0 to 10.
How to use it in trading:
The indicator displays 8 lines in a separate sub-window of the chart. All lines fluctuate strictly between the 0.0 and 10.0 levels.
- Finding true momentum: If a currency line surges upward (toward 8–10), it signifies that the currency is not merely being moved by speculators with large orders, but that the movement is backed by a massive volume of transactions (ticks).
- Entry point: Look for line crossovers at the extremes. For instance, buying the EURUSD pair becomes relevant when the blue line (EUR) crosses above the 2.0 zone, while the red line (USD) simultaneously drops below the 8.0 zone.
