Multi-Currency Potency Meter
Buy the Full 1.04 version from MQL5.com.
Download the Full Manual.
You can also try this Free/Demo 1.03. The
free version has limited functionality.
This Multi-currency meter measures the relative distances from major currency pairs to a long moving average. The relative distances are used to calculate individual currencies (currency singles). Currency singles represent a specific world economy and is shown on the indicator as a colored line.
The currencies (currency singles) described by this indicator include:
AUD, CAD, CHF, EUR, GBP, NZD, USD, JPY.
The reason to separate individual currencies from currency pairs can be understood from the following example:
Consider a chart of EURUSD in which prices are rising. Are the rising prices due to the Euro (EUR) economy rising or because of the U.S. Dollar (USD) economy falling—or are both conditions true? The Multi-currency Potency Meter gives a relative measure of the strength and weakness of EUR and USD in this context to make this determination.
After separating into distinct currencies, this indicator then combines the strongest currency singles with the weakest to determine which currency pairs are the most “potent.” Potent currency pairs have price movement and direction and therefore provide the best instruments to find high probability trades.
This indicator can be placed upon any chart.
Updates occur every second if a tick on the underlying chart has come in.