See the link. Where could I find a good Currency Strength Indicator?

[birdog]

Hi:

See the link. Where could I find a good Currency Strength Indicator?

http://www.fxstreet.com/technical-studies/ (scroll to the bottom...something like the 2nd from the bottom module)...Title Currency Strength Chart in this case.

It shows the strength of the individual currencies by themselves.



Greg

[NinjaTrader_CalH]

Hello Greg,

Thank you for your post.

I am not aware of any indicator for this kind of analysis.

Do you have a sample of the calculations involved for getting these strength values?

[birdog]

Not right now...

Could you leave this post open and let others know if they can contribute?

[NinjaTrader_CalH]

Greg,

Sure thing.

[arbuthnot]

Hi:

See the link. Where could I find a good Currency Strength Indicator?

http://www.fxstreet.com/technical-studies/ (scroll to the bottom...something like the 2nd from the bottom module)...Title Currency Strength Chart in this case.

It shows the strength of the individual currencies by themselves.



Greg

I’m wondering if this is what you may mean:

I think you may be looking for absolute values of currencies, rather than the comparative values.

Just say your ‘basket’ contains three of the major currency pairs: EUR/USD, GBP/USD, AUD/USD. You want to get some kind of absolute USD value.

Firstly, we can’t compare different pairs directly as their values differ and are ultimately quite meaningless on their own. What matters here is the percentage increase.

Just say you’re daytrading, then let:

a = EUR/USD % change in last hour.

b = GBP/USD % change in last hour.

c = AUD/USD % change in last hour.

so put:

v = (a + b + c )/3

so v is the average change of USD against these three currencies and gives an indication of how USD is doing as a stand alone.

Moreover, you could add a weighting factor to each one, given, say, EUR/USD is much more important than the other pairs.

You can get this information by having a multi-instrument chart with these three pairs on it and setting up a strategy.

Just an idea.

Hope this helps.

[NinjaTrader_MichaelM]

Hello,

Just for future visits to this thread, I have developed an unsupported momentum-based indicator that calculates and plots the base currency strength, quote currency strength, and strength of the currency pair applied to a given chart. It can also be used in market analyzer to compare currency pair strengths side by side (a market analyzer template is included). The indicator can be found here: http://www.ninjatrader.com/support/f...d=4&linkid=669

Thanks!

[shogunforlife]

Awesome indicator Michael!
Do you have an NT8 version by any chance?

[NinjaTrader_PatrickH]

Hello shogunforlife,

Thank you for your post.

We would not have a NinjaTrader 8 version of this indicator. If you would like to look into converting this yourself there are a few key items to look for when converting your scripts from NinjaTrader 7 format to NinjaTrader 8, and we keep a Code Breaking Changes table updated in the NinjaTrader 8 Help Guide to assist in identifying changes or new implementations of familiar methods and properties from NinjaTrader 7: http://ninjatrader.com/support/helpG...ng_changes.htm

Please let me know if you have any questions.

[shogunforlife]

Thanks Patrick. Will give converting it a go.