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I want to share with you this indicator that I made that shows the currency Strength/Power/Value (whatever you want to call it)
What it’s doing is looking at all 28 pairs and then taking apart the movement as a percentage and reconstructing the individual components of each currency pair.
There 2 display options that will give you 4 different outputs.
- showBoth
When this is set to true, it will show individual components of the pair. For example, if its EURUSD, it will show the value of EUR and USD separate. When it’s set to false, it will show EUR – USD, hence the value of EURUSD. - oneLine
When set to false, it show the components for 4 time frames that you can define by YYY_period (defaults to M15, H1, H4, D1).
The only requirement is that you need to have data for all 28 pairs of the major 8 currencies (EUR, USD, GBP, JPY, CHF, AUD, NZD, CAD)
You can specify the periods and how many bars the percent change should be calculated for with XXX_period and YYY_bars
I think this is more accurate than the MA based currency strength indicators. This is showing none delayed value. I think the real power comes from being able to spot divergences and in comparing with the price. Imagine doing TZs with this
Pay attention to how the fast value line is above the slow when the price moves up and how it is below when price moves down. Attached is the indicator with 2 templates. First template has the indicator with some moving averages and bollinger band. You can trade with this just like the way you would with price. If you drop in the MA(200) and MA(50) to price and compare with the MA(200) & MA(50) on this value indicator, you will see how this shows entries much clearer and reacts to changes quicker.
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Update: MQL4 file is now attached – Dec 19th 2014
Update: Thanks to Simplex for adding enums for the period – Dec 20th 2014
Update: Thanks to muuh for pointing out a bug in onLine setting – Jan 20th 2015-
This topic was modified 6 years, 1 month ago by
. Reason: added MQL file
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This topic was modified 6 years, 1 month ago by . Reason: Fixed the auto update issue
Focus, Patience, Determination & Order in chaos
Tpl is blank for me on build 745
Sorry, I forgot to mention the following:
The only requirement is that you need to have data for all 28 pairs of the major 8 currencies (EUR, USD, GBP, JPY, CHF, AUD, NZD, CAD)
Do you have the data for all 28 pairs? Make sure they are all visible in the Market Watch window (where all the symbols are located). You could just right click on that and click show-all. Then you can drop in the indicator again and it should show the lines. You may have to refresh the indicator 2 times in order to load up all the data. It’s weird how MT4 downloads the missing data.
Focus, Patience, Determination & Order in chaos
Hmm odd, I have a few other csm’s working ok. Still no go. I will try on my computer at home.
Hmm odd, I have a few other csm’s working ok. Still no go. I will try on my computer at home.
oh! I see the problem.. your currencies have an extension “i” at your broker. GBPJPYi for example. I haven’t made it work for currencies with an extension. Let me make that change for you real quick. I will update the file shortly.
Update: Alright, I added the option to set post and prefix to currencies. So for you, set the postfix = i and it should work
Please download it again.Focus, Patience, Determination & Order in chaos
Wow! Thank you Saver0!
I will try this later tonight when I get home. One of my gripes with the currently available CSM’s is their lag. Looking forward to reading the code to see what you have done.
Cheers mate!!
What's it all about? It's all about money.
It’s all good, thanks knew it had to be something simple.
Great Indicator Saver0
Is it your indicator you discuss in Finding Value at FF (sorry, i dont remember the thread name)
This is really interesting, Saver0!
Thanks for posting! Since you did not post the source code, I have a question related to your basic algorithm.
What exactly do you mean by taking apart the movement as a percentage ?
I am familiar with cluster indicators and the way several pair values are deconstructed to currency values and then synthesized to the overall strenght values for a currency. The question is: what is the basic algorithm you apply to the single pairs before processing the cluster?
Regards, simplex
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)
One more question regarding the input parameters:
Whenever I change the values of fastest_period, fast_period, slowest_period, or slow_period,the signal will completely disappear. Tested on several pairs, H4.
How do the *_period and *_bars parameters interact?
BTW: which is the smoothing algorithm that you apply?
Regards, simplex
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)
How do the *_period and *_bars parameters interact?
Sorry, that is the time period in minutes. It should be one of the standard time periods, M1, M5, … D1, W1, MN, etc.
What exactly do you mean by taking apart the movement as a percentage ?
It’s very simple really. This is how its done for example for EURUSD:
Period = H1
Bars = 24EURUSD_%_Change = (Close[now] – LowestLow[of 24 bars])/(HighestHigh[of 24 bars] – LowestLow[of 24 bars]) //This gives current position as a percentage of the movement
Find the % change of all the EUR pairs and USD pairs in the above manner. This way I can get the percent change of each component of EUR/USD. When I combine multiple time periods % changes, I end up with something that resembles the currency curve but fixed to an axis.BTW: which is the smoothing algorithm that you apply?
EMA
Is it your indicator you discuss in Finding Value at FF
It was based on this, yes. But I haven’t developed this much in that direction. Can’t find the time
I know that this indicator is powerful but haven’t found the time to do a proper analysis.Take a look at the currency_power2.png in my first post for example. See how when the red/lime lines crosses where the currency changed direction. It’s showing the balance of power switches.
Let me know if you guys have any requests. I will make a few changes anyways shortly and post an update
Focus, Patience, Determination & Order in chaos
What exactly do you mean by taking apart the movement as a percentage ?
It’s very simple really. This is how its done for example for EURUSD: Period = H1 Bars = 24 EURUSD_%_Change = (Close[now] – LowestLow[of 24 bars])/(HighestHigh[of 24 bars] – LowestLow[of 24 bars]) //This gives current position as a percentage of the movement Find the % change of all the EUR pairs and USD pairs in the above manner. This way I can get the percent change of each component of EUR/USD. When I combine multiple time periods % changes, I end up with something that resembles the currency curve but fixed to an axis.
Thank you!
So it’s basically the Fast Stochastic formula %K, right?
I also experimented with this one in cluster indicators and found, that it can give a precise and sometimes even early warning of a reversal.Look at highly correlated currencies like EUR and CHF. When XXXCHF performs a harsh drop, then you can bet that XXXEUR will follow soon, and vice versa.
What it cannot give us compared to slope based clusters is a realistic measure for currency strength. This information is being blurred by the Stochastic algorithm, which provides only the relative position of price as compared to its extreme values during a defined number of bars.
So when you’re really trying to catch reversals – most of us do, right? – then a stoch based cluster might be a good choice.
If you’re really looking for currency strength, mostly on higher tf, then something slope based or maybe CCI based might be worth a look.
Just my personal opinion.
Cheers, simplex
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)
So it’s basically the Fast Stochastic formula %K, right?
Yup that’s correct.
Yea, I have also made every imaginable CC type indicator possible.. haha CCI, OBV, MA, RSI, etc. Less compression the better I think. OBV based was pretty interesting, it was acting as an early warning signal for trend reversal ahead.
There is only just so much we can do with price, right? haha
Focus, Patience, Determination & Order in chaos
CCI, RSI, Stochastic are death trap for traders and trading!
See attached:
Accurate currency strength should include the market share of each currency as a factor.
NZD moving up doesn’t have the same effect on other currencies as USD moving up the same distance.
G.
CCI, RSI, Stochastic are death trap for traders and trading! See attached:
As with all technical indicators the range of possible interpretations is rather wide. You marked supposed overbought regions in your pics for Stoch, RSI, and CCI. Those regions can also be interpreted as a healthy trend or swing, bullish in this case. So buy, yes! Or no buy, when following the overbought interpretation.
This ambiguity is why I’m trying to find alternatives or at least supplements for my analysis – like transient zones, for example.
For use in cluster indicators, I think that algorithms which provide an output on a limited scale like Stoch or RSI should be analyzed very cautiously. The limited scale tends to suppress exactly that strenght of a move we might want to detect. This is why I brought the CCI algorithm in this discussion.
It’s a question of what you’re aiming at: do you want to detect swing reversals or do you want to analyze currency strength? You won’t get both results in the same indicator, IMO.
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)
Accurate currency strength should include the market share of each currency as a factor. NZD moving up doesn’t have the same effect on other currencies as USD moving up the same distance. G.
This is a very interesting idea! I never thought of that.
Do you have a particular idea of how to implement this market share in the cluster algorithm?
On the other hand: what are we interested in and what kind of analysis do we perform?
When looking at a pair like USD and NZD: I’m fully aware of the fact that USD has a much higher market share as compared to NZD. But I’m interested in the movement of their exchange rate – and this is what I’m going to analyze in a cluster. What would be the particular benefit of introducing market shares in this algorithm?
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)
Regarding CCI, RSI and the such – I introduced the ForexGT_Activity indicator above them in previous post – it doesn’t have a “double meaning” of OverBought/OverSold….
As to currency Strength I use the ForexGT_Spaghetti indicator (Top), already with relative market share factor implemented.
This is, with full zoom and no chart, my “good morning” to the Forex market. Here I can see what to trade and what not to trade.
The bottom indie is same, just showing the current pair on the graph, with an additional white line to show the diffrence between them – used for easy trade direction and reversal points.
G.
Regarding CCI, RSI and the such – I introduced the ForexGT_Activity indicator above them in previous post – it doesn’t have a “double meaning” of OverBought/OverSold…. As to currency Strength I use the ForexGT_Spaghetti indicator (Top), already with relative market share factor implemented. This is, with full zoom and no chart, my “good morning” to the Forex market. Here I can see what to trade and what not to trade. The bottom indie is same, just showing the current pair on the graph, with an additional white line to show the diffrence between them – used for easy trade direction and reversal points. G.
Are those commercial products? Couldn’t find them anywhere in this forum or over at FF.
EDIT: if my questions for technical detail of the implementation touch kind of corporate secrets just tell me and I’ll stop asking. Never mind!
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)
Hi simplex,
I think it is his own made indicator.
Hi, i use CSS but it always after some time freeze my mt4 platform. I dont know if its because im using old laptop. Thanks for sharing your strengh indi, hope it dont freeze
Hi, i use CSS but it always after some time freeze my mt4 platform. I dont know if its because im using old laptop. Thanks for sharing your strengh indi, hope it dont freeze
CSS indicators usually analyze 28 pairs permanently during runtime. Depending on the algorithms used and the effectiveness of their implementation in the indicator code they can consume an extremely high amount of CPU and / or memory ressources. Running them on an old laptop or a weak VPS server can cause problems, depending on the specific implementation.
Use your windows control panel to check CPU / memory usage when launching a CSS indicator. When ressource consumption is extremely high consider to acquire stronger hardware or to optimize indicator coding.
Also incomplete price history can cause a permanent or temporary freeze due to loading activities between MT terminal and server. Sometimes it helps to be patient. After history of all pairs in question has been built things might work again.
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)
Yes, i know about it. It comsumes a lot because it keeps with all the currency and it can be optimized, right now i cant get new hardware…out of cash, im earning till i get enough i will buy but it will take time. I use strict MM. Thanks for your answer, very complete.
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Hi guys,
I updated the original post with a zip file containing the MQL file.
Today I decided to work on my “value” indicator a bit. Here is a screenshot from the latest version.
First we have the CCI version of the indicator. Lime is the actual price and White line is the value line.
It’s difficult to analyze when the pure price and the value lines are on the same axis. Best thing is to do is to limit the number of bars to a short range so I can see the short term value in reference to price. This is how that looks like.
It’s still a work in progress.
What I can tell you is that it’s based on the power indicator that I shared. Try to come up with creative ways of determining intrinsic value. What I have done is nothing complicated. Very simple but uses all 28 pairs to gauge the value and possible manipulations of price.
Focus, Patience, Determination & Order in chaos
Thank you for sharing MQL4 file, Saver0
This weekend i have things to play with.
- showBoth
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