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Great idea to start a thread on this!
I think the best way to measure the strength of one currency over another is when force is applied.
Does that mean that your indicator Impact Strength will only measure certain movements (or whatever) in the moment of a news release related to the pair in question?
Across the board we should see all the pairs with USD react in a similar way. BUT, the way to measure it would be to compare the difference in movement or force. This would tell us something about the opposite force applied by the other pair that is tied to USD.
If your indicator calculates the currencies’ strength the way I’m used to, then any positive value related to the base currency will be counted as a negative one for the quote currency. When USD shows a strong reaction after some news this does not necessarily show that AUD is specifically weak if it’s under pressure for some time during a USD upswing.
I really do believe that we can’t discuss concepts like currency strength seriously without diving deeper into algorithmic detail. Your initial post just doesn’t provide sufficient detail to start a fruitful discussion. I’m working on CSS myself for over a year now, and started to code my first EA in that basis (see screenshot).
It’s not necessary to post the source code if you like to keep it disclosed, but algorithmic detail is essential. Otherwise any discussion on this topic won’t do more than scratch a solid surface with its fingernails.
CSS is an important concept, and this thread can become really relevant. But first of all: thank’s for starting it!
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A good trader is a realist who wants to grab a chunk from the body of a trend, leaving top- and bottom-fishing to people on an ego trip. (Dr. Alexander Elder)