Hello guys,
First of all I hope you guys had a great Christmas which will be followed by a massive new years celebration!
Im looking for an indicator which will automatically calculate the strength and weaknesses of the currencies
offered by my broker. I’m currently using Go market.
An example of what I am looking for can be seen at this website. unfortunately I cant post the link since I am a new member. But if you proceed to Google and search for “Vertue trading fxo pressure gauge” if should be one of your first links that pops up.
It goes under the name of “Pressure Gauge” and does exactly what I’m looking for “The PressureGauge calculates the relative strength and weakness of the major currencies, and is used to select the best currency pairs to trade.”
Does anybody know any indicator like this which can be downloaded preferably for free or for a small cost?
Carl… if you ask me, this company that seems to be marketing these indicators is in the buggy whip business right about the year henry ford develops and impliments mass production.
from what I can tell… their pressure gauge as they call it is nothing more than a heat map. My thinkorswim charting platform allows me to see price in terms of percentage of change…and although i’m sure (and I hope in fact) someone can step forward and create what your looking for in no time flat…
u can figure out this info my hand for all the majors in less than 15 minutes a day. Not saying u want to do this of course… just trying to put the value that they are promotiin on their site in its proper place. Overdone.
Jay thank heaps for posting.
You absolutely right in what you are saying, weather or not the company who promotes this pressure gauge use this solely to enter or exit trades I would have no clue but I certainly hope not!
Like you said, it is a piece of cake to figure of this information, I usually do this manually and take note on a
piece of paper few times during the day to see what direction the market is going. Most of anything I
thought an indicator of this kind would save me some time as it does the work for me
I’m sitting in the same boat as you as I have no programming skills what so ever… first time I actually regret I did not attend my computer classes in school lol. But if anyone know anything or have the time to put something quick together I would be a happy man.
Carl
Here’s a simple way to do it. Express every currency you care about in Obamas. Then calculate the average. Say you are looking at Gillard and Merkel. So you have three numbers around 1 (while the euro is still worth anything LOL!). Take the average and then express your index number as the currency value in usd divided by the average usd value. Bingo - there’s your index. Anything above 1 is strong, below 1 weak.
I can code up an indicator for you that does this. Then you get the pictorial version on your screen.
And looking at the ratios of the derivatives (1st and second) would be particularly interesting. Most crucial - what timeframe are you most interested in?
Hmmmnnn… It looks like good 'ol Henry has come a long way since the last time I looked at his site!!!
That’s what you’re looking for but don’t ask me how to use it. First: I don’t trade FOREX. Second: when I WAS trading FOREX I couldn’t work out the merit of it or how to use it to trade. But that’s not to say that it DOES NOT have merit i.e. that’s ‘just me’. I’m sure Henry will be more than willing to help you out though.
Then of course there’s also Google. You know: that MAJOR SEARCH ENGINE??? Just Google the phrase ‘currency strength meter’ (without the quote marks of course) and there a a GAZILLION links to ‘Currency Strength Meter’ (most of which will take you to posts and forums where the use of Heny’s Currency Strength Meter is discussed).
Ok nearly done. Couple more weeks, will post a link for members to download the indicator. The logic will be
H1 or D1 timeframes
Major currencies (eur gbp usd chf cad aud jpy)
Relative strength over
user defined timeframe (eg move over last 24 hours, where 24 is variable)
user defined moving average (eg average of the relative strength over last x periods, say 240 hours would give you a ten day average of the 24 hour relative strength)
Will start testing this as a trade filter and post results in due course. Watch this space.
calculates move over a parameterised period (default 24 hours)
averages the change in value in that currency (default 24 hours)
–> so you get a two day rolling average of the 24 hour change in value. Of course you can change these parameters to look longer term
It runs on the H1 timeframe, works on any H1 window, though only really makes sense to attach to one pair, eg EURUSD or AUDUSD and then away you go. Nice thing is that if you have a cross (e.g. greenback/green line moving lower, ie USD lower and ‘gold’ aud higher) then you know where to trade (in this case long USD! Unless you are suicidal). It would also reveal cross trades since it shows all the fundamental value changes.
Only catch --> how do we share it with you and others on the forum? I’m keen to start testing it now as a trade signal and interested to see other people’s results too.
Go to our home page and search for “multi” in the ‘search this site’ option. There you can download the ex4 file which does what you need. Quick user guide:-
Pop on the H1 timeframe chart for any of the pairs listed in the ‘settings’: I apply to EURUSD
Leave all the currencies selected as ‘true’
Try various settings for the ‘shiftrange’ (which is the number of H1 bars over which it tests for an increase in currency value; 24 bases everything on the change in the pair in the last 24 hours) and the ‘averaging period’ (which is the number of changes that the indicator averages, so 24 would mean that it averages every 24 hour change in the pair over the last 24 hours; 240 would mean that it takes a 10 day rolling average of the 24 hour change in value)
A word of warning: currently the indicator is somewhat slow to ‘fire up’, but fast once attached. This is even more pronounced for larger parameter values (the 24/24). It won’t cause any issues as you use the indicator to assess relative strength since speed is not an issue once attached. It just has to back-calculate all these relative moves and the code hasn’t yet been optimised for speed.
Finally, the colour scheme is as follows:
Blue - EUR
Gold - AUD
Pink - GBP
Red - JPY
White - CHF
Green - USD
There’s a logic to this colour scheme which hopefully is obvious. Let us know if it is not intuitive as it is changeable.
One more thing (putting the lie to the ‘finally’ above
As a trade indicator we’re planning to test when it signals ‘jaws’
IE, where you get a cross, like the greeny greenback moving up sharply and crossing a falling gold AUD, the AUD is relatively weakening against the average currency basket vs the USD, and the USD is generally strengthening vs the average of the basket as well… the implications hopefully are clear to all! Mix this up with your favourite candlestick entries and this baby is hot to trot. The flexibility of the averaging period means that you could use this in all kinds of H1/H4/D1 strategies as a complementary indicator. And the fact that it tells you about the 7 majors means that you can use it to trade all the pairs between them.
I am very interested in testing out this indicator you have coded, but I can’t seem to find it on the site. Can you possibly explain a little more on how I can find it? Thanks,
where the activation key is explained as our gift to the b-pips community for inspiration and information.
There is more via our Profile page on babypips.
Have any of you ever tried one of these currency strength indicators? One is from Quantum Trading and the other from Mark Boardman and is called Apollo. Both for MT4.
