Best Currency Strength Meter and why?

Looks like you have visited the ADVANCED ALIEN CIVILIZATION Erubus

Why you offer to violate someone's copyright?

Wow I don't realize FF have a like post button until now ... they place it very far to the bottom right and color it grey.

Hello Erebus
I noticed that your CSM indicator does not change the numbers when you switch from 1 TF to another TF.
Is that the correct way is supposed to work that indicator?
Do you know how these values are calculated?
Thanks

Study posts 74 and 78 in this thread to find answers to your questions.

In the end, what is the answer to the thread title "Best currency strength meter and why"?

Yes, only change with price moving, it is not linked to any time frame, if you want time frame, see the picture

BTW, it's not "my" CSM

Read this thread to answer about they work --------> https://www.forexfactory.com/showthread.php?t=163158



And as mentioned, follow the links from Post 78 ---------------> https://www.forexfactory.com/showthr...40#post9588240

@Erebus

Which CSM is your favorite and you use in your trading?
Cheers

Are you still using the CSM you created? Please advise and thanks.

Hi JayRai. Where did you get this data? Are you using an Indicator? Please advise and thanks.

There is no correct answer. It is like asking the question "which type of moving average is the most reliable?". All indicators, including CSMs, are ultimately a derivative of price. Because they do not directly measure the underlying forces that drive markets, e.g. sentiment, they have limited predictive value. Instead, indicators are merely tools whose main benefit is to summarize aspects of price behavior that might not otherwise be obvious to the trader.

A lot of the debate of "which tools work best?" is a subjective argument that is ultimately a matter of personal preference. How the trader interprets the data that a tool provides, and uses it in the context of an overall trading strategy, is more important than the tool itself.

Yes, but only in a secondary, confirming role.

hi..in..right..chart..does..not..show!

I have no idea what the meaning of your comment

good luck

Hi Erebus

Do you know any currency meter "spaghetti type" good and freeware please?
Thanks

recoded

Hi nesta
Is that indicator a spaghetti style or table style of currency meter?
Do you coded it by your self or is a modification of an existing one?

hi...modified

ITT, confusing currency strength with pair strength.

Hi All.

I'm struggling to get my 'currency meter pro' loaded onto my metatrader platform. I have the files and followed instructions to transfer to my Metatrade account, but it just won't come up. Any help would be greatly appreciated

This thread asks:
Which is the best currency strength meter, and why?

As an example, I just discovered this site. It is one of many that either sells or promotes paid-for currency strength meters (CSMs). A little commonsense should tell you that it's decidedly suspect.

They promote four different paid-for CSMs, and claim that none of the free products that they tested were up to standard. On what grounds? They state that accuracy is important. Of course it is. But, assuming that there are no coding errors in the indicator calculations, accuracy is dependent solely on the price data being provided by the br0ker or market maker.

Which brings me to my next point(s). Firstly, all CSMs are derived from price, and price lags sentiment (more here). In an industry where getting quickest access to quality information can provide a competitive advantage, institutional traders tend to use indicators that quantify sentiment, economic flows, orderflow/liquidity etc. (Many of these indicators are proprietary and lie beyond the scope of 'retail' charting packages like MT4).

Secondly, all price analysis is retrospective, and as price moves as waves within waves, this opens the door for arbitrariness that can only be resolved by selective bias. To explain with an example: the last 10 candles might represent an up-move, but these may be the most recent part of a larger sideways move, which in turn may be part of a larger down-move. Hence, like all other technical measures (e.g. moving averages, regression lines, etc), the price-derived CSM measure is determined arbitrarily by the historical horizon that's under study. There is no objective way of proving that one horizon is superior to another, that one way of calculating the value is superior to another, and hence that one CSM is necessarily superior in its 'accuracy' to another. All are ultimately giving a retrospective view of what price has done, and have no greater predictive value than price itself (or any other derivative of price).

Thirdly, predictive value comes down to the strength of the underlying sentiment which is determined by a number of fundamental reasons, many of which are economic, structural and/or logistical. If, for example, a CSM says that EUR is weak and USD strong, then the downtrend in EURUSD will continue only if there are overriding reasons -- i.e. reasons that underlie price -- causing it to do so. A price based CSM is not equipped to take these fundamental factors into account.

Fourthly, a CSM is merely a tool, and it is down to the trader, and how s/he interprets the strength/weakness measure, and uses it in the context of an overall trading system, that is an ultimate determinant in success or failure.

Another claim made by the website I targeted is that their recommended CSMs have more features than the free offerings. Just for starters, compare them to the PSA, Recent Strength and CSM indicators that I wrote, and you'll see that this claim is completely false. I have no reason to endorse my own creations, they are offered FREE, and I have no personal interest in who does or doesn't use them. And there are some equally good FREE CSMs developed by other programmers, some of whom are regular contributors to the FF forums (see the links in the green typeface here, for example).

Hence my point is this: Why spend money on CSMs, when
(1) all CSMs are price derived, for which there are inherent limitations;
(2) no one strength calculation is necessarily superior, in terms of its predictive value, to another; and
(3) there are plenty of FREE products that are every bit as accurate, and even more feature rich, than the expensive CSMs being recommended in the website.