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Building Currency Strength Indices from Seven Forex Pairs

Article MQL5 code base
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Summary

The indicator estimates relative strength for eight major currencies from a basket of seven currency pairs: AUD/USD, EUR/USD, GBP/USD, NZD/USD, USD/CAD, USD/CHF, and USD/JPY. It displays all currency indices in one chart window, with each index expressed as a percentage change from a chosen starting value of 100 relative to the basket. It can also detect the chart’s currency pair and show the associated indices.

The indicator supports applying CCI, RSI, Momentum, MACD, Stochastic, and moving averages to the calculated indices. This offers a way to compare currency movements across the market without switching between individual pair charts. The document describes the indicator’s inputs and display features, but provides no formula details, trading rules, tests, or evidence that the indices predict returns. Its usefulness therefore lies in market monitoring and analysis rather than a demonstrated standalone strategy.

Key ideas

  • The indicator calculates indices for eight major currencies using seven forex pairs.
  • It displays currency changes as percentages relative to a selected base value.
  • Users can view all indices together and optionally detect the chart’s currency pair.
  • Common oscillators and moving averages can be applied to the indices.
  • The description provides no trading rules or performance validation.

Tags

ForexTechnical indicatorsMomentum

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.