Currency Strength
By LuxAlgoFeb 7, 2023
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The Currency Strength indicator scores five user-selected currencies against one another and plots how those scores evolve across a chosen period. It's LuxAlgo's build of the currency strength meter: each currency's close-to-open change is normalized to a percentage, summed across every pairing in the basket into a composite score, and accumulated until the period resets, so "strength" means measured relative performance, nothing vaguer.
How to Trade the Currency Strength?
- Ranking read: currencies topping the meter are outperforming the basket over the window; those at the bottom are lagging, the raw material for choosing which pairs deserve attention.
- Trailing strength lines: the historical plot shows each currency's accumulated relative performance, resetting at period end so readings stay comparable across cycles.
- Scatter quadrants: Strong (green) is positive strength above its prior value; Improving (yellow) is negative strength but rising; Weakening (aqua) is positive but fading; Weak (red) is negative and falling.
- Meter resolution: raise it to expose finer differences between closely matched currencies.
The scatter view is the distinctive piece: by plotting current strength against the previous period's, it separates level from momentum: a currency that is strong-but-fading reads very differently from one that is weak-but-turning.
What the Currency Strength Shows
- The trailing relative strength of the five selected currencies over a user-defined timeframe period, or a scatter plot as an alternative display.
- A strength meter whose visibility, resolution, position, and size are configurable.
- A scatter graph with adjustable horizontal and vertical width in bars for finer placement.
- Under the hood, each pairing's reading is the normalized close-to-open change, (close − open) / open × 100, composited per currency across the basket.
Frequently Asked Questions
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- Orderflow lookback up to full history
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- Futures data alongside crypto, stocks, forex and commodities
Also works on
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