The Currency Strength Bars indicator computes a “strength” from an un-weighted geometric mean of several currency pairs. This is similar to the US Dollar Index (USDX) and FXCM’s USDOLLAR. However, it does this, not just for the USD, but for 7 other currencies too. That’s 8 major currencies in total: USD, EUR, GBP, CHF, JPY, AUD, CAD and NZD. It does this by analysing up to 28 separate currency pairs.
The raw strength indices are further processed using the popular RSI (Relative Strength Index) indicator. The RSI does a great job of “normalizing” the strength values for all 8 currencies into a range between 0 (very weak) and 100 (very strong).
The indicator ranks all 8 currencies according to their strengths and displays them as a “strength bar” (either horizontal or vertical) on your chart.
Key to a good analysis of the forex market is the ability to consider multiple time-frames. The Currency Strength Bar indicator does just that. Up to 4 time-frames can be assessed with a single instance of the indicator.
The Currency Strength Bars indicator is useful for finding good candidate currency pairs for trading. For example, one should look to trade a strong vs weak pair, since these pairs will likely have the best trends. Once candidate currency pairs are found, then other trading techniques such as traditional indicators, support / resistance, etc. may be used to find an entry.
The following parameters are available in this app:
The application displayed on this page does not take in to consideration your individual personal circumstances and trading objectives. Therefore it should not be considered as a personal recommendation or investment advice. Past performance is not indicative of future results. There is no guarantee that the systems, trading techniques, trading methods, and/or indicators will result in profits or not result in losses.
This indicator is only compatible with FXCM’s Trading Station Desktop. Additionally, an FXCM account is required (including free FXCM demo accounts). Note, when using a demo account, the “Lite” or “Lite+” modes of the indicator might be required, due to the limit on the number of currency pairs which can be subscribed.
Links to third-party sites are provided for your convenience and for informational purposes only. FXCM bears no liability for the accuracy, content, or any other matter related to the external site or for that of subsequent links, and accepts no liability whatsoever for any loss or damage arising from the use of this or any other content. Such sites are not within our control and may not follow the same privacy, security, or accessibility standards as ours. Please read the linked websites’ terms and conditions.
Forex Capital Markets, LLC. (“FXCM LLC”) is an independent legal entity and is not affiliated with robocod.blogspot.co.uk. robocod.blogspot.co.uk is not owned, controlled, or operated by FXCM LLC. Steven Dickinson is not an employee, agent or affiliate of FXCM.
We can customize any app to meet your trading needs. All you need to do is tell us what you’re looking for and we'll help you build the perfect trading app.