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Currency Relative Strength

Currency Relative Strength is a powerful indicator of the technical analysis of the financial markets, the main purpose of which is to show the strength of the currency pair against each other and to show the trend of movement and power of the wave. The major users of this indicator are analysts and traders of stock and Forex markets. Ali has a satisfaction of +80% of users in the latest polls.

This indicator shows the relative strength of 8 major currency pairs. (EUR – USD – GBP – AUD – NZD – CAD – JPY- CHF )

EUR : Pale blue

USD : White

GBP : Red

AUD : Blue

NZD : Purple

CAD : Orange

JPY : Green

CHF : Yellow

Currency Relative Strength complementary explanations :

Normal range: 0 – 100

Very strong range: +60
Very low range: -40
Currency Relative Strength
Currency Relative Strength

4USINGRELATIVE CURRENCY STRENGTH (RCS)The Relative Currency Strength indicator is a tool used for technical analysis for the Forex (foreign exchange) market. This indicator calculates the current and historical strength or weakness of a currency. The RCS can be used in all timeframes; the interpretation of the indicator remains the same.The basic idea of the RCS is based onfinding the strongest and weakest currency in the present moment in a historical context. When you have all currencies displayed simultaneously, you can seek out the strongest and weakest currency in that moment. The strongest currency is the one whose line is currently the highestin comparison to the otherlines; vice versa, you will find the weakest currency to be the lowest line at that moment. The currency pair that results from this is a potential trade candidate.If the RCS is showing that at the moment, the euro is the strongest (overbought) and the US dollar is the weakest (oversold) currency relative to the other major currencies, then a short entry in the EURUSD Forex pair makes sense.The logic behind this states that the EURUSD will fall either when the euro shows weakness or the US dollar displays strength. Since the euro is overbought, its performance will tend to weaken; in addition, the dollar is oversold, which means we can predict rising strength on the part of the USD. By finding the strongest and weakest currency, one trades the currency pair that currently contains the highest probability of a value adjustment.

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Specifications of this indicator :

platform : Metatrader 4 ( MT4 )

Time Trame :H4 – Daily

Currency Pairs:  EUR – USD – GBP – AUD – NZD – CAD – JPY- CHF

Recommended companies for this Indicator : FXTM

The download file has these parts :

Currency Relative Strength.ex4

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