Hi all,
This is another approach to the same subject: choosing the right pairs, the strongest and weakest of the day.
There are some Currency Strength Meters (CSM) around the market but most of them are not clear or they are not effective.
To me, a non clear CSM is this indicator that shows you the crosses of all the pairs in a chart to know which one is increasing and which one is decreasing. I am pretty sure it works for other people but it doesnt work for me as I cant read the information at a glance, so many colors I never know which one is EUR or AUD or what.
A non effective CSM is Nitro, which is an indicator made with more than 10 other indicators, crosses and overbought and oversold levels and Oh my God what a mess. The same as before, maybe for some people it works but not for me. I have seen Nitro showing a 95% because all the confluences and crosses and levels help but the pair is just flat. Other times it is around 60-70% but a beautiful trend is there.
I am looking for an indicator easy and fast to read at a glance which bases are simple and easy to understand for its simplicity. In my humble opinion, the easiest (if it works) is always the best, not only trading but in whole live.
I have been looking for some weeks at an indicator that seems to have these ingredients: Forex Power.
I was reading the code of it (I have to say that I have no idea about programming) and it seems to me that the way it works is by looking at the High and Low of a day for the 7 pairs of a currency and checking if, as an average, they are in the 95% higher or 5% lower of the day. If they are in the 95% or above then the color of the Currency changes to green and red for the Currencies that are 5% or beneath. Plese tell me if I am wrong because I would like to know if this is the way it uses to say a currency is strong or weak, thanks.
Something similar is what I suggested in my first posts to look at what currencies has had the strongest increase during the last n minutes to decide what to trade.
Maybe Forex Power is even easier to read. I saw last Friday that Currency Performance Percentage has so many numbers that I am afraid it will be another mess to me. I dont know yet, I have to check it better next week in live.
I need simplicity in this first step of trading: choosing the right pairs to trade. Second step is how to trade them, according to what tools. I like to look at stochastics because I think if a pair shows strength and it reaches an oversold level in a single moment (all the trends need retracements) it should be a good moment to enter long. But other people will use other indicators or methodology, the one that likes more.
By the moment lets focus on choosing the right pairs and Forex Power.
As I said before I was reading the code and changing values and trying what happens, bigger size - better to read, more colors also better to read and different intervals. The idea is always the same, to find something useful but so easy to understand at a glance.
Take a look at the next picture:
Could you please make an intraday version of this indicator?
First thing is the scale. We always use the scale 100 and percentages in our lives. So the first think it would be useful is to change the scale from 0 to 9 in the current indicator (I dont understand the reason why the programmer used a scale 9) to a scale from 0 to 100.
I believe this is very important in terms of ease to understand the values of the indicator at first sight. It is not the same to see that EUR is at 1.86 or to see that it is at 20.7 (meaning that EUR is weak because, on average, measuring all pairs they are in its 20.7% lowers, as EUR is always base currency). It gives more information as the scale is 100 instead of 9. And besides we understand it much better as we are used to this scale. Just one decimal; one number with 3 digits, two decimals would be too many digits for no added value.
The variables needed (5):
1. Time: 30 (The indicator uses highest high, lowest low and last tick of the last 30 minutes of the day)
2. Very Strong: 95 (When the output of the indicator is >= 95)
3. Strong: 80 (indicator >= 80 and < 95)
4. Weak: 20 (indicator is <= 20 and > 5)
5. Very Weak: (indicator is <= 5)
The colors we need (another 5):
1. Very Strong: Lime
2. Strong: Yellow
3. Medium: DimGray
4. Weak: MediumOrchid
5. Very Weak: Red
Of course we should have the option to change every one of these 10 variables the same way we can change the variables there are now (4) which are X, Y, Corner and Window.
I have added two new intervals, not only strong or weak but very strong and very weak. This is to have a clear look at what currencies we have to monitor in case they are ready to change from strong to very strong or from weak to very weak.
You can also observe that there is a color for Medium values but no need to create a variable for that because it will automatically paint in DimGray all the values which are > 20 and < 80.
I will really appreciate your feedback about this idea.
Find enclosed the original Forex Power and the one I modified a little bit.
Magic11
This is another approach to the same subject: choosing the right pairs, the strongest and weakest of the day.
There are some Currency Strength Meters (CSM) around the market but most of them are not clear or they are not effective.
To me, a non clear CSM is this indicator that shows you the crosses of all the pairs in a chart to know which one is increasing and which one is decreasing. I am pretty sure it works for other people but it doesnt work for me as I cant read the information at a glance, so many colors I never know which one is EUR or AUD or what.
A non effective CSM is Nitro, which is an indicator made with more than 10 other indicators, crosses and overbought and oversold levels and Oh my God what a mess. The same as before, maybe for some people it works but not for me. I have seen Nitro showing a 95% because all the confluences and crosses and levels help but the pair is just flat. Other times it is around 60-70% but a beautiful trend is there.
I am looking for an indicator easy and fast to read at a glance which bases are simple and easy to understand for its simplicity. In my humble opinion, the easiest (if it works) is always the best, not only trading but in whole live.
I have been looking for some weeks at an indicator that seems to have these ingredients: Forex Power.
I was reading the code of it (I have to say that I have no idea about programming) and it seems to me that the way it works is by looking at the High and Low of a day for the 7 pairs of a currency and checking if, as an average, they are in the 95% higher or 5% lower of the day. If they are in the 95% or above then the color of the Currency changes to green and red for the Currencies that are 5% or beneath. Plese tell me if I am wrong because I would like to know if this is the way it uses to say a currency is strong or weak, thanks.
Something similar is what I suggested in my first posts to look at what currencies has had the strongest increase during the last n minutes to decide what to trade.
Maybe Forex Power is even easier to read. I saw last Friday that Currency Performance Percentage has so many numbers that I am afraid it will be another mess to me. I dont know yet, I have to check it better next week in live.
I need simplicity in this first step of trading: choosing the right pairs to trade. Second step is how to trade them, according to what tools. I like to look at stochastics because I think if a pair shows strength and it reaches an oversold level in a single moment (all the trends need retracements) it should be a good moment to enter long. But other people will use other indicators or methodology, the one that likes more.
By the moment lets focus on choosing the right pairs and Forex Power.
As I said before I was reading the code and changing values and trying what happens, bigger size - better to read, more colors also better to read and different intervals. The idea is always the same, to find something useful but so easy to understand at a glance.
Take a look at the next picture:
Could you please make an intraday version of this indicator?
First thing is the scale. We always use the scale 100 and percentages in our lives. So the first think it would be useful is to change the scale from 0 to 9 in the current indicator (I dont understand the reason why the programmer used a scale 9) to a scale from 0 to 100.
I believe this is very important in terms of ease to understand the values of the indicator at first sight. It is not the same to see that EUR is at 1.86 or to see that it is at 20.7 (meaning that EUR is weak because, on average, measuring all pairs they are in its 20.7% lowers, as EUR is always base currency). It gives more information as the scale is 100 instead of 9. And besides we understand it much better as we are used to this scale. Just one decimal; one number with 3 digits, two decimals would be too many digits for no added value.
The variables needed (5):
1. Time: 30 (The indicator uses highest high, lowest low and last tick of the last 30 minutes of the day)
2. Very Strong: 95 (When the output of the indicator is >= 95)
3. Strong: 80 (indicator >= 80 and < 95)
4. Weak: 20 (indicator is <= 20 and > 5)
5. Very Weak: (indicator is <= 5)
The colors we need (another 5):
1. Very Strong: Lime
2. Strong: Yellow
3. Medium: DimGray
4. Weak: MediumOrchid
5. Very Weak: Red
Of course we should have the option to change every one of these 10 variables the same way we can change the variables there are now (4) which are X, Y, Corner and Window.
I have added two new intervals, not only strong or weak but very strong and very weak. This is to have a clear look at what currencies we have to monitor in case they are ready to change from strong to very strong or from weak to very weak.
You can also observe that there is a color for Medium values but no need to create a variable for that because it will automatically paint in DimGray all the values which are > 20 and < 80.
I will really appreciate your feedback about this idea.
Find enclosed the original Forex Power and the one I modified a little bit.
Magic11
Attached File(s)
Forex Power.mq4
5 KB
|
419 downloads
Forex Power Multicolor.mq4
6 KB
|
430 downloads