Pair Strength Analyzer indicator

Tnx u so much!!! last friday this was my best trade based on PSA.....UC great signal
My indicator is still in beta test.....i have to improve it

Hanover, i'd like to code an EA ...but i 'd like to know , if it's possible: what rappresents the number plot by PSA???..... i want to say: it's a number of pips? i don't understand exactly what number rappresent.

I'd like to find a good cutoff for using in an EA

Anyway my congratulation for your indicator it's great OK!

Gj still open..... we will see at the open of markets what happens

Many thanks for your kind comments, but the indicator simply is what it is. All strength indicators are lagging in that they gather the information from historical price data (more info here). Also, it is up to the trader as to whether he interprets strength as an indication that a move is likely to continue, or whether price is now overbought or oversold, and hence is now more likely to reverse.

Having said that, PSA does have the advantage that it is able to aggregate data from several different periods and present a consolidated result, in other words it need not be biased to one particular timeframe or lookback period. I explained more about this in my reply to Angela here.

The calculation itself is based around regression lines, and the final value that gets printed is not a number of pips, but merely a relative measure of the average steepness of the slopes of the regression lines being considered. So for example, if one currency pair has a value of 200 and another has a value of 100, the first pair is 'trending' approximately twice as steeply as the second. Also, please feel welcome to read the instruction PDF that is attached to post #1 for more information.

If you're interested in developing an EA, PSA also automatically outputs its values to Global Variables which an EA can read directly. I explained how to do this in my reply to KayStreet here.

Tnx u!!!

THis is my indicator to plot many cross by great Hanover's PSA indicator. It plots value at each new bar.

INSTALLATION:
- copy indicator into MQL/indicators folder
- attach before Hanover's PSA indicator and check number of ID
- after attach my indicator...and in setting pannel write ID number od PSA indicator

I'm glad to have a feedback

Take care and i remember that it's a sperimental indicator and u can loose money with trading forex

hanover, thank you very much for such invaluable work and generosity. I do not get over my amazement with such an excellent and useful tool.
Could I please ask for a more explanation about extern string WeightsForReg? I'm a little confused about its potential. After your answer and as an example, would the parameters of the image be logical, what would they mean?

OK let's start with the basics and then gradually work towards a more complex scenario.

We are looking at two currency pairs: EU and GU. LengthsForRegr is set to 20, so we are looking at 20 period regression line only, and PeriodsForRegr is set to D1, so we are looking at the daily chart only. As can be seen, PSA returns a value of -61 for EU and +606 for GU. Now look at the 20 period regression lines for each of these two currency pairs in the first two screenshots. EU is sloping slightly downward (hence the negative value) while GU is sloping steeply upward (hence the positive value). The PSA values tell us that the slope of GU is approximately 10 times as steep as the slope for EU (606 = ~ 61 x 10).
Notes:
1. The values are not a measure of pips or time, simply a relative measure of the slopes between the currency pairs in question.
2. The PSA's summary values for the currencies are the average for each currency across all of the pairs, multiplied by 10 (to remove decimals and generate a nice round whole number). The value is inverted for the second named currency in the pair.

In the following screenshot I've changed LengthsForRegr to 10,20,30 which means that PSA now put three imaginary regression lines of lengths 10, 20 and 30, and calculates the average slope of the three lines for EU,D1, giving a value of -234 (downward. It's obvious from the screenshot that the downsloping 10 period line is steepest, affecting the average accordingly). I haven't shown the screenshot for GU,D1, but PSA shows that its average is +114 (upward).

Now suppose we wanted to double the weight that PSA applies to the 10 period Regression line, to give more emphasis to the price movement of the most recent period. Then we would set LengthsForRegr to 10,10,20,30. (Note that you can have up to 50 entries in LengthsForRegr, separated by commas. This determines the number of imaginary regression lines, and their lengths, for which PSA will average their slopes).

PSA is also capable of producing a consolidated value for regression lines over different timeframes. You simply enter the different time frames in PeriodsForRegr, separated by commas. For example, supposing LengthsForRegr is 10, 20, 50, 100 and PeriodsForRegr is D1,W1. Now PSA will average the slopes of 8 different regression lines, that is 10, 20, 50 and 100 period lines on the D1 timeframe, and likewise 10, 20, 50 and 100 period lines on the W1 timeframe, and print the consolidated average. This assumes that WeightsForRegr is set to 1,1. If, for example, you wanted the daily component to have twice the weight of the weekly component, you would set WeightsForRegr to 2,1. (Each entry in WeightsForRegr matches the corresponding entry in PeriodsForRegr). In the screenshot, you can see the settings, and also the 10, 20, 50 and 100 period regression lines for EU (on the daily chart only):
The values of +185 for GU and +78 for EU tell us that GU has the higher average upward slope.

Please note that the timeframe entries in PeriodsForRegr can be either relative or absolute. This works the same as the RefreshPeriod as explained here.

The WeightsForRegr entries don't have to be double or triple, you can use decimal numbers, e.g. 1.5.

Also, for more info, please see this post, and for additional examples my reply to Angela here.

Very clear and detailed response, thanks
A question comes to me that I will answer for myself. Why a trader wants to double the weight that PSA applies to x period of a regression line or give more emphasis to the movement of the price to the most recent period?
1. it's a base TF base according to his/her trend definition or strategy
2. It is his/her timming TF
3. It would eventually compensate the `latency' if I can call it that, with its immediate TF, no programming or calculation of the indicator speaking (of course), but time and slopes between TFs.
surely I can be wrong, would there be other reasons to justify doubling, tripling etc the WeightsForReg parameter?
thanks for your help.

I don't know the answer, everybody could potentially have different reasons, but the facility is there if you want to use it.
The weight doesn't have to be double or triple, you could use decimal numbers, for example 1.5.

@hanover
This indicator is great !! With it I have changed my trading style and my gains are really getting better.
Besides I want to say thank you very much for your support to this traders community !!

Many thanks for your kind words. I'm happy to hear that your trading is improving.

I don't have any plans to enhance the indicator at this point. It works fine for me the way that it is.

You can add any instruments/symbols (exotics, metals, commodities, indices, cryptocurrencies, etc) to the list in the CurrencyPairs parameter, provided that your broker has made them available. However, keep in mind that '1 pip' for a currency pair is not necessarily the same '1 pip' measure for another instrument, hence the slope values that PSA prints might not always represent an 'apples to apples' comparison. Moreover, even within the realm of currency pairs, different instruments can have significantly different average daily ranges. To help alleviate this problem, you can use the RescaleUsingATR setting (as explained in the instruction PDF attached to post #1) to have PSA scale the slope values relative to the ADR of the relevant instrument. But with the proviso that the values that you're comparing now reflect the extent to which the instrument is overperforming or underperforming its normal ADR, as opposed to its 'raw' slope value.

To further explain its use, the RescaleUsingATR setting requires two values, separated by a comma. If you leave the setting completely blank, then no re-scaling is performed, i.e. the 'raw' slope values are used. This means that currency pairs with large daily ranges will tend to score higher. However, if you enter the two values nnn,timeframe into RescaleUsingATR, then each slope value is divided by a nnn period ATR of the specified timeframe, arguably making for a more accurate comparison. The latter entry may be either an absolute or relative timeframe, as explained here. The values themselves aren't as important as the mere fact that any wide ADR variations are at least being mitigated, but FWIW as a guide I tend to use 100,D1, i.e. a 100 period average daily range.

Thanks again, I have found and read your introduction-pdf too late, my fault.

Many thanks for your post. It inspired me to change my mind: I have added a new option to the PSA indicator.

If you set RescaleUsingATR to %,nnnn (i.e. percent sign, comma, then a number) then instead of using regression line slopes, PSA will use the percentage gain (or loss) in the value of the instrument, from the close of each candle specified in LengthsForRegr to the current price. So for example, if LengthsForRegr is set to 10, 20, then PSA will calculate the %gain from the close of the candle 10 periods ago to the current price, the %gain from the close of the candle 20 periods ago to the current price, average them, and then multiply the result by the second value that you entered into RescaleUsingATR. If, for example, the second value is 100, then the value displayed by PSA will be the actual %gain, e.g. a 2% gain would print as 2. Hence I recommend entering a value like 10000, which would then show the gain in hundredths of a percent, e.g. 2% would print as 200.

The settings PeriodsForRegr and WeightsForRegr continue to operate as before, but using the %gain data rather than regression line slopes.

The goal of the new option is to allow improved 'apples to apples' comparison, i.e. %gain/loss, between forex and non-forex related instruments that use different units of measure, and daily ranges.

The new version of PSA can be downloaded from post #1. I have updated post #1 accordingly.

Yes it seems FF has a problem. It has been noticed in multiple threads as well. So a general issue not on the users side.

Many thanks for this info.

This is such a great thread with contributors way ahead of my self... I am thankful to have got access to the indicators you experts have created, and let it for free. May I ask for some more color how to implement the add-on that metatsock has coded..... it is so great to get aware at what time a currency has begun to show a trend development , at least stronger then other pairs. That is exactly what I was looking for for quite some time ... and found it here.

Thanks ! will test it with pleasure

U are welcome

Green pips to all

Hi Hanover,

Do you know why when I change to different font type, the list is no longer line up? Each line is all over the place. The only font that line-up nicely is your default.

Thanks.

You need to use a monospaced (instead of proportional) font -- explanation in wikipedia.

This applies to all applications, not just MT4. For example, see the screenshot below -- an old version of Microsoft Word: PSA displays both the symbol ID and value as one single field, aligned at the left, and the space characters separating them are going to be disproportionately thinner using a proportional rather than monospaced font.

Here are some examples of monospaced fonts. You could use Google to find and download them (like this). Info on how to install fonts here.