A pair strength indicator of EUR GBP USD Vs JPY and as an oscillator i used the TSI indicator
it is based on the article "May the Strength be with You"
"How to apply this info to our trading strategy?
I suggest at least two approaches:
1) filtering trades of your current strategy depending on the strength of currencies involved. As an example, if your system gives a buy signal on EURUSD, but we know that EUR has a much lower strength than USD, then this trade should be probably filtered out.
2) building an entire automatic strategy based on the strength concept itself. As an example, a strategy that constantly monitors the 6 pairs EURUSD, EURGBP, EURJPY, GBPJPY, GBPUSD, USDJPY and enters a trade only on 1 pair at a time when a huge spread among strengths is detected (buy EURUSD if EUR is the strongest currency and USD is the weakest one in our analysis)."
www.pimpmyea.com/may...trength-be-with-you/
it is based on the article "May the Strength be with You"
"How to apply this info to our trading strategy?
I suggest at least two approaches:
1) filtering trades of your current strategy depending on the strength of currencies involved. As an example, if your system gives a buy signal on EURUSD, but we know that EUR has a much lower strength than USD, then this trade should be probably filtered out.
2) building an entire automatic strategy based on the strength concept itself. As an example, a strategy that constantly monitors the 6 pairs EURUSD, EURGBP, EURJPY, GBPJPY, GBPUSD, USDJPY and enters a trade only on 1 pair at a time when a huge spread among strengths is detected (buy EURUSD if EUR is the strongest currency and USD is the weakest one in our analysis)."
www.pimpmyea.com/may...trength-be-with-you/
//By Glaz
study("Pair Strength")
fast=input(5)
slow=input(15)
v1=security('EURGBP',period,close)
v2=security('EURJPY',period,close)
v3=security('EURUSD',period,close)
v4=security('GBPJPY',period,close)
v5=security('GBPUSD',period,close)
v6=security('USDJPY',period,close)
EUR=(v1+v2+v3)/3
GBP=((100-v1)+v4+v5)/3
JPY=((100-v2) + (100-v4) + (100-v6)) /3
USD=((100-v3) + (100-v5) +v6)/3
eur=tsi(EUR,fast,slow)
gbp=tsi(GBP,fast,slow)
jpy=tsi(JPY,fast,slow)
usd=tsi(USD,fast,slow)
plot(eur,color=red,title='EUR')
plot(gbp,color=green,title='GBP')
plot(jpy,color=yellow,title='JPY')
plot(usd,color=aqua,title='USD')
hline(0)
hline(0.5)
hline(-0.5)