Currency Strength Tracker
This indicator is a high quality trading tool that tracks and displays the relative strengths of the 8 major currencies (EUR,GBP,USD,AUD,NZD,CHF,CAD,& JPY). The relative strength values are obtained using the slope of a moving average. All 28 major currency pairs are analyzed and the slopes of the moving averages are recorded. The base currency of each currency pair is credited with the slope of the MA, whether positive or negative, and the quoted currency is credited with the MA slope * -1. This way, the strength of each currency will directly reflect the strength of the trends in each currency pair. So, for example, if the moving average on the EURUSD has a positive slope, the EUR will be credited with that positive number and the USD will be credited with the negative equivalent of that number. This will indicate the strengths of the EUR and USD for this currency pair as positive for the EUR and negative for the USD, and the magnitude of the slope will indicate exactly how strong or weak each currency is. This analysis will be done on all 28 major currency pairs, so by the end, each currency will have 7 different strength values from each currency pair it’s a part of. Then these numbers are added together to give the final strength value for each currency. This can be extremely useful as it will help you spot gaps in the strengths of the currencies, which you can use to help make profitable trades by trading the strong currency against the weak. This indicator shows all the current strengths of all 8 currencies in real time. Each currency is represented by a different indicator line, and the currencies are listed in descending order from strongest to weakest on the far right side of the chart. This makes it quick and easy to analyze the different currency strengths, and spot potentially profitable trade opportunities. This indicator has several variables that you can customize. These inputs include the MA period, IntShift, IntShift_2, MA_Method, and AppliedPrice. The MA period is the value for the period of the moving average used to calculate the currency strengths. IntShift and IntShift_2 are the two points between which the slope of the MA is calculated. So, if IntShift and IntShift_2 were set to 1 and 30, respectively, then the slope calculation of the MA would be done between the 1 stcandle and 30 thcandle relative to the current bar. The MA_Method is the smoothing method for the moving average. The options for this variable are: 0 for Simple Averaging, 1 for Exponential Averaging, 2 for Smoothed Averaging, and 3 for Linear-weighted Averaging. The AppliedPrice variable refers to the price that the indicator uses to calculate the moving average. The options for this variable are: 0 for close price, 1 for open price, 2 for high price, 3 for low price, 4 for median price, 5 for typical price, and 6 for weighted price.