Simple Currency Strength Meter [SCSM by Debis03]

Simple Currency Strength Meter - Overview

This indicator provides traders with a clear and straightforward view of individual currency strength across seven major currencies (USD, EUR, JPY, GBP, AUD, CAD, CHF) using their respective currency indices.

What Makes This Indicator Useful

• Unlike traditional currency strength meters that use combinations of forex pairs to estimate strength, this indicator directly utilizes currency indices (DXY, EXY, JXY, etc.) to provide a purer measurement of each currency's standalone performance.
  

Key Features

• Direct Index Measurement: Shows actual currency strength without the influence of counterpart currencies.
  
• Clean Percentage Changes: Displays precise percentage movements over your chosen lookback period.
  
• Visual Direction Signals: Quick-read arrows showing strength direction (▲ for bullish, ▼ for bearish).
  
• Sorted by Strength: Currencies automatically sorted from strongest to weakest.
  
• Fixed Timeframe: Uses a consistent timeframe regardless of your chart setting.
  
• Customizable Period: Adjust the lookback period to match your trading timeframe.
  
• Overlay Format: Displays directly on your chart for easy reference.
  

How to Use It

1. Strength Analysis: Quickly see which currencies are strongest and weakest
   
2. Pair Selection: Find promising pairs by looking for currencies moving in opposite directions
   
3. Trend Confirmation: Validate your chart analysis with overall currency strength
   
4. Divergence Detection: Spot when a currency pair is moving against the overall strength trends
   

Trading Application Example

If you see USD at +0.55% (▲) and CAD at -1.79% (▼), this indicates USD strength and CAD weakness. This combination would suggest potential upward movement on USDCAD pairs, helping you select the best trending pairs to trade.



The indicator gives you a quick, accurate currency strength overview without having to analyze multiple charts, saving time and providing valuable context for your trading decisions.