PipTick Currency Strength Indicator MT5
Knowledge of the strengths and weaknesses of each of the currencies is very important for every trader, trading in the forex market. This currency strength indicator measures the strength of the eight major currencies (USD, EUR, GBP, CHF, JPY, CAD, AUD, NZD) based on the relative strength index indicator (Relative Strength Index, RSI). PipTick Currency Strength indicator in a simple and accessible form indicates when a currency is overbought, oversold, or in the "normal state". So you can easily determine which pair is the strongest, and what - the weakest.
Indicator calculates 28 currency pairs and runs on any platform MT. Indicator PipTick CSI uses only 7 currency pairs to calculate the remaining 21 pairs. To work correctly, the indicator in MetaTRader platform, you must have only these seven pairs: EURUSD, GBPUSD, AUDUSD, NZDUSD, USDJPY, USDCHF and USDCAD.
NoteIf the indicator is used in the strategy tester, the data for all currency pairs need to be downloaded in the archives of quotations before the simulation (manual). If it has been added to the schedule in the usual way, additional downloads are required.
interpretation of indicator
Since PipTick CSI is based on the indicator RSI, its interpretation is very simple. There are three zones
- oversold zone (CSI value in the range 0 - 30)
- normal zone (CSI value in the range 30 - 70)
- overbought zone (CSI value in the range 70 - 100)
How to use it?
There are two basic approaches to trade on the basis of the strengths and weaknesses of currencies:
- Strong currency to buy and sell weak - trend trading. For example, if you see that the EUR strengthened and AUD weakens, buy a pair EURAUD. Do not trade if one currency is overbought / oversold.
- Strong currency selling and buying weak - trade against the trend. For example, if USD overbought (above level 70) and JPY resold (below 30), sell USDJPY.
You can achieve excellent results by using the concept of overbought / oversold currency, together with price action or candlestick patterns. All you have to do is wait for any currency will not go down in the overbought / oversold area and will not appear candlestick pattern, such as a hammer or a shooting star. Of course, this is just one of thousands of possible ways to use the indicator of strength of currencies.
The indicator can be used for long-term, intraday, swing trading or scalping.
PipTick CSI indicator can be used for manual testing history. You only need to set the "Bars_Ago = 0" in the display settings, and download historical data from seven currency pairs that indicator should be calculated.
- The indicator shows the strength and weakness of the eight major currencies
- A simple comparison of one currency to another
- overbought and oversold conditions for entry and exit
- It works on all timeframes
- The indicator is not redrawn
- Ready for testing
- customizable settings
- Excellent results, together with an analysis of price action and candlestick patterns
- An ideal tool for scalping
- Very fast calculation
- It works on all timeframes
- Designed for MT4 and MT5
- Bars_Ago - The number of bars displayed indicator
- RSI_Period - period to calculate the indicator RSI
- Weighted_Mode - Selection of weighted or unweighted calculation
- Smoothed_Mode - Selection of raw or smoothed curve
- Smoothed_Method - Select the type of anti-aliasing
- Smoothed_Period - The period for calculating the smoothing
- Text_Size - Text size labels
- Line_Thickness - line thickness
- Weight_USD ... NZD - The weighting factor USD ... NZD
- Visibility_USD ... NZD - Visibility USD ... NZD
- Color_USD ... NZD - The color of the curve and mark USD ... NZD
The information displayed:
- USD ... NZD - CSI value of USD ... NZD
For more information, visit PipTick Currency Strength Indicator.