Relative Currency Strength from Cross-Pair Price Comparisons

Summary

This indicator estimates and plots the relative strength of major currencies, plus gold, by comparing prices across a collection of currency pairs. It requests pair data and derives currency series, then displays the lines together so traders can compare their movement and ranking over time. Options control which currencies are shown and how the plotted strength series are presented.

The script also calculates reference averages from the strongest and weakest series, with a setting to exclude extremes when enough currencies are active. It includes session and timeframe handling to align calculations with chart periods. The document provides implementation details but no performance results, trading rules, or evidence that the rankings predict returns. Currency strength comparisons depend on the selected pairs, data feed, and calculation conventions; the indicator is a visualization aid rather than a tested standalone strategy.

Key ideas

• The indicator compares a set of currency-pair prices to construct relative strength lines for currencies and gold.
• It plots multiple strength series together to make cross-currency comparisons visible.
• Reference averages can use the extremes or omit them when enough series are displayed.
• The script includes logic to account for chart periods and session timing.
• No strategy rules or empirical performance evidence are provided.

Tags

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