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-   -   An indicator for the strength of a currency (https://www.forexfactory.com/showthread.php?t=925836)

mtharwat Aug 1, 2019 7:38pm | Post# 161

2 Attachment(s)
@Rafei,

First of all Rafei, never underestimate your idea. I have read it before in MQL4 but I could not find an indicator to download. The idea of balancing all strenth/weakness to zero is the only way to do it.

You have previously asked for how to make use of your creation. Simple: trade pullbacks on smaller time frames with confirmation from HTFs. If You are checking Three TFs (Daily:H4:H1). then check strength/weakness on Daily/H4 and totally disregard it in entry H1 TF. Just find the best pullback in price action with no confirmation from indis or currency strength.


My suggestion also is to enable your currency strength on custom time frames (H12, H8, D3, etc..).

I am on holidays for a week or so but when I get back, I will try it.

I was looking for exactly what you created. A currency strength based on the current open/previous close percentage change in weekly, Daily and H4 or any custom time frames.

It is best to have a very raw currency strength (percentage close) in conjunction with other indi-derived currency strengths. And also to trade Multiple Time Frames of the strengths.

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In the meantime, I have a question, please. I was creating a synthetic chart for each currency in trading view. I want to follow your logic and balance everything to Zero.
For EUR strength for example:
Which is the better formula to create a synthetic chart?
Adding them: EURUSD+EURCAD+EURAUD+EURJPY, etc..?
Adding them and dividing each value by its rate to get "1" for each pair: EurUSD/its rate + EURAUD/its rate+ EURJPY/its rate, etc..?
Adding them but dividing any Yen pair by 100?

Or the multiplication of all of the pairs? EURUSD*EURUSD*EURCAD*EURAUD, etc,?
Or "N" Square rooting the multiplication of the above formula?

I want to apply the same principle by finding the formula for synthetic charts that truly reflects the market.

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I am totally into currency strength at the moment and Iam digging deep in it.

I created a synthetic chart based on Summation and been analyzing Price Actin, patterns, Divergences, etc...

I also Created crosses of RSI and MACDs for each currency group. I am still experimenting with it.

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I could not apply the percentage change in tradingview yet.

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Click to Enlarge

Name: Euro Strength Example.png
Size: 86 KB
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Name: MACD Currency Strength.png
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mtharwat Aug 1, 2019 9:00pm | Post# 162

I had an idea for some time that I want to implement to get the best formula for "Charting" a synthetic chart "Based on the Percentage change of raw prices".

For each currency, we have seven pairs. So if I add the percentage change in all seven pairs for open/Close/High/Low, wouldn't I be able to have a "synthetic chart" for the currency?

So the steps will be as follows:

1- calculate percentage change in O/H/L/C in every pair for each currency.
2-Add those percentages (should it be adding?) for O/H/L/C
3-Create a candlestick chart/Bar chart/Line chart for each currency.

If this concept is right, I may then hire a coder in tradingview community.

The concept can be applied to raw price changes or indis later on.

Rafei Aug 3, 2019 1:03am | Post# 163

I had an idea for some time ...
Hi mtharwat,
Thanks for your feedback.
What you spoken about is a chart that shows the movements of an individual currency, I have created such a (synthetic) chart for USD for the purpose of trading Gold, because gold only moves against dollar value.

You can see a sample chart in this previous post:

USD chart for trading gold

the figure

good luck.

mtharwat Aug 5, 2019 6:01am | Post# 164

1 Attachment(s)
{quote} Hi mtharwat, Thanks for your feedback. What you spoken about is a chart that shows the movements of an individual currency, I have created such a (synthetic) chart for USD for the purpose of trading Gold, because gold only moves against dollar value. You can see a sample chart in this previous post: USD chart for trading gold the figure good luck.
Rafei:

Tell me about your experience with this USD chart based on percentages? before I hire a coder in tradingview. Do you have something similar for other individual currencies that are based on adding percentages for all seven pairs for each of the 8 currencies?

I have already tried combing pairs to create synthetic charts to look for the one with an edge as I have previously posted. But have not been able yet to create a synthetic chart based on percentage close.

BTW: Have you experimented with a synthetic "Pair" that shows the percentage change in the form of candlesticks for pairs? for example a synthetic GBP JPY pair that shows percentage change based on High/Low/Close/Open in the form of candlesticks. Attaching a picture of an indicator called percentage range candle- a public indi in tradingview. Was thinking of applying this principle on a group of currency pairs by adding their percentages.Click to Enlarge

Name: download (1).png
Size: 62 KB





The second question for you Rafei and others please: It may not be the place for it here but I have posted this question in a couple of threads without a satisfactory answer. I may open a thread dedicated for this purpose.

Apart from synthetics based on the percentage change, As I have previously explained, I tried different formulas for each individual currency to get the most responsive one.: I am interested in knowing the math logic for the following formulas:

Examples:

EURUSD+GBPUSD+AUDUSD+..... (Adding to to get EURO Strength/index/whatever fancy name.
or EURUSD*GBPUSD*AUDUSD .... (Multiplying to get EUR strength/index/what ever fancy name.
or N Rooting the above formula and so on..
or Adding each of the pairs of a currency and divided it by its exchange rate to get a value of one. for ex: EURUSD/xxx.yyy(exchange rate)+GBPUSD/xxx.yyy+ GBPJPY/xxxx.yyy etc...

when you have many variables and want to plot a chart to represent their responsiveness/reaction/momentum against each other, what is the best math formula: Multiplying or adding or N Rooting?

It is a question for Mathmeticinas but anyone who delved into this, please share your finding.

Thanks

mraye Aug 5, 2019 1:41pm | Post# 165

Rafei, any idea why the CSI Daily (v1.01) indicator never shows any lines when its plotting against a USD pair? It works properly when the pair does not contain USD in it such as EURCAD or AUDJPY.

Fred-IV Aug 18, 2019 1:50pm | Post# 166

{quote} Rafei: Tell me about your experience with this USD chart based on percentages?
This is a good thread, good coder and experienced traders who use a smart strength meter dashboard - all available for free in this thread:

https://www.forexfactory.com/showthread.php?t=545718

This is a second thread (spin-off from the first) with more or less advanced strategy trading a double gap (imho not as well researched as the first tbh):

https://www.forexfactory.com/showthread.php?t=586711

Fred-IV Aug 18, 2019 1:55pm | Post# 167

Apart from synthetics based on the percentage change, As I have previously explained, I tried different formulas for each individual currency to get the most responsive one.: I am interested in knowing the math logic for the following formulas: Examples: EURUSD+GBPUSD+AUDUSD+..... (Adding to to get EURO Strength/index/whatever fancy name. or EURUSD*GBPUSD*AUDUSD .... (Multiplying to get EUR strength/index/what ever fancy name. or N Rooting the above formula and so on.. or Adding each of the pairs of a currency and divided it by its exchange rate...
None, I don't understand the underlying technical concept but yen pairs added to this formula will heavily overweight both outcomes to the point of them being useless. There are better ways to gauge the strength of a currency.

ForexSwag Sep 4, 2019 8:11pm | Post# 168

Hello TS, I need help in developing currency strength that looks like in the attachment. The features are similar to yours (It compares the movement of 8 major currency), however the currency strength indicator in the attachment had different features: 1. The value changes every second 2. The value ranges from 1 to 100. 50 being flat, below 40 is weak and above 60 is strong Do u know how to create this type of CSM? Cos i need the exact formula so i can use it in my EA and I really need the formula to create that Thanks a million {image} {file}
Does that indicator expire 12/31/2019

Gauer Sep 14, 2019 9:36am | Post# 169

1 Attachment(s)
Hi there my friend Rafei.

I am not being able to change the colors in the currency strength RSI, it doesn´t matter the color you choose in the indi settings, the color always stays at default settings.

Also the CSI is not plotting anything. In indi settings I turned eur and usd on:

Click to Enlarge

Name: CSI.png
Size: 90 KB

Flashyberry Sep 26, 2019 5:36pm | Post# 170

Just how good are these CSI indicator

bralgo Sep 26, 2019 6:46pm | Post# 171

{quote} Thanks for your opinions. I have done a test and calculate the sum of the all 8 signals for each bar. This sum is zero at all times. Does this mean anything to you? {image}
the underlying model/algorithms assumes the energy state of the market is always in equilibrium at any given time hence all always equal to zero, so money is just converted from one currency to another (Law of Conservation of Energy)... The trick is following the money and profiting from the inefficiencies of the market it's self....

Gauer Oct 9, 2019 7:42pm | Post# 172

{quote} Hi mtharwat, Thanks for your feedback. What you spoken about is a chart that shows the movements of an individual currency, I have created such a (synthetic) chart for USD for the purpose of trading Gold, because gold only moves against dollar value. You can see a sample chart in this previous post: USD chart for trading gold the figure good luck.

Rafei hope all is good.

Can you please fix the Currency Strength RSI so we are able to choose the colors for the lines?? They are hard coded.

And the CSI is not plotting anything here, check my previous post, there is a screenshot.

Thanks


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