Currency Power Indicator

Currency Power Indicator for MetaTrader4

An amazing indicator that determines how strong each base currency is and assigns to it a score from 0 to 10 by comparing it against 9 of its counter-currencies.

In this way you can get the whole picture of how well each specific currency is performing against the overall market.



What Does The Currency Power Indicator Do?

1. Identifies strong and weak currencies
2. Instantly compares each currency against 9 of its currencies
3. Helps identify currency pair combinations that are strong up or down trending
4. Simplifies the analysis by providing a value of 0-10
5. Utilisation of 10 trend indicators

How Does The Currency Power Indicator Work
Find Strong and Weak Currencies
This indicator shows a value of 0 to 10 for each of 10 base currencies showing how strong the specific base currency is.

1. A value closer to 10 implies a strong base currency whose value is increasing.
2. A value closer to 0 implies a weak base currency whose value is decreasing.

This value is calculated by comparing a currency against several of its counter currencies to provide a general overview of how strong this base currency is in the markets and not just against a single currency.

Find Strong Trending Pairs to Trade
Look for a base currency with a high score (eg above 6.5) and for a base currency with a low score (eg bellow 4.5). Buy the currency with the high score while selling the currency with the low score.

Example 1: CAD has a high score of 8.0 while EUR has a low score of 3.4. So sell EUR and buy CAD. Hence SELL EURCAD. It can be seen at the chart below how EURCAD is falling.

http://www.theforexcabin.com/wp-cont...AD-example.png

Example 2: AUD has a high score of 7.1 while NZD has a low score of 2.6. So buy AUD and sell NZD. Hence BUY AUDNZD. It can be seen at the chart below how AUDNZD is rising.
http://www.theforexcabin.com/wp-cont...ZD-example.png
Use of 10 popular Trend indicators to calculate the strength of each pair

1. Long Moving Average
2. Short Moving Average
3. Moving Average Crossover
4. Moving Average Convergence Divergence (MACD) vs MACD Signal
5. Moving Average Convergence Divergence (MACD) vs zero line
6. Acceleration
7. Relative Strength Index (RSI)
8. Average Directional Index (ADX)
9. Parabolic Stop and Reverse (SAR)
10. Momentum

Check out the Currency Power Indicator

http://www.theforexcabin.com/wp-cont...r-20141023.png

A quick analysis using our Currency Power indicator that shows how strong a currency is in the scale of 0 to 10 gives the above picture.

1. USD and AUD became very strong
2. CAD gaining power
3. EUR,GBP ,NZD very weak

Hence we should be looking to sell EUR,GBP,NZD and buy USD ,AUD and even CAD

Hi Fylaxtas,

Well done for your Indicator, I also use kinda same strategy to take advantage of Relative Force concept.

Mine isn't impacted by timeframe and isn't limited to points.... even if it would have a theorical maximum points.

I only use 1 indicator to get it.

I have a couple of questions:
How does it react on high impact news? Can it be sensible to price action to change ranking right after a news is released?

Do you send mql4? if not, do you create global variables so we can use it into other personal EA?

I guess we have similar Asset ranking, would it be possible to compare your result vs my Indi on a particular time?

Cheers
CrazyTrader