OPEN-SOURCE SCRIPT
Updated Advanced Forex Currency Strength Meter

# Advanced Forex Currency Strength Meter
🚀 The Ultimate Currency Strength Analysis Tool for Forex Traders
This sophisticated indicator measures and compares the relative strength of major currencies (EUR, GBP, USD, JPY, CHF, CAD, AUD, NZD) to help you identify the strongest and weakest currencies in real-time, providing clear trading signals based on currency strength differentials.
## 📊 What This Indicator Does
The Advanced Forex Currency Strength Meter analyzes currency relationships across 28+ major forex pairs and 8 currency indices to determine which currencies are gaining or losing strength. Instead of relying on individual pair analysis, this tool gives you a bird's-eye view of the entire forex market, helping you:
- Identify the strongest and weakest currencies at any given time
- Find high-probability trading opportunities by pairing strong vs weak currencies
- Avoid ranging markets by detecting when currencies have similar strength
- Get clear LONG/SHORT/NEUTRAL signals for your current trading pair
- Optimize your trading strategy based on your preferred timeframe and holding period
## ⚙️ How The Indicator Works
### Dual Calculation Method
The indicator uses a sophisticated dual approach for maximum accuracy:
- Pairs-Based Analysis: Calculates currency strength from 28+ major forex pairs (EURUSD, GBPUSD, USDJPY, etc.)
- Index-Based Analysis: Incorporates official currency indices (DXY, EXY, BXY, JXY, CXY, AXY, SXY, ZXY)
- Weighted Combination: Blends both methods using smart weighting for enhanced accuracy
### Smart Auto-Optimization System
The indicator automatically adjusts its parameters based on your chart timeframe and intended holding period:
The system recognizes that scalping requires different sensitivity than swing trading, automatically optimizing lookback periods, analysis timeframes, signal thresholds, and index weights.
### Strength Calculation Process
- Fetches price data from multiple timeframes using optimized tuple requests
- Calculates percentage change over the specified lookback period
- Optionally normalizes by ATR (Average True Range) to account for volatility differences
- Combines pair-based and index-based calculations using dynamic weighting
- Generates relative strength by comparing base currency vs quote currency
- Produces clear trading signals when strength differential exceeds threshold
## 🎯 How To Use The Indicator
### Quick Start
- Add the indicator to any forex pair chart
- Enable (recommended for beginners)
Pine Script® 🧠 Smart Auto-Optimization - Watch for LONG 🚀 signals when the relative strength line is green and above threshold
- Watch for SHORT 🐻 signals when the relative strength line is red and below threshold
- Avoid trading during NEUTRAL ⚪ periods when currencies have similar strength
Note: This is highly recommended to couple this indicator with fundamental analysis and use it as an extra signal.
### 📋 Parameters Reference
#### 🤖 Smart Settings
- 🧠 Smart Auto-Optimization:(Default: Enabled) Automatically optimizes all parameters based on chart timeframe and trading style
#### ⚙️ Manual Override
These settings are only active when Smart Auto-Optimization is disabled:
- Manual Lookback Period:(Default: 14) Number of periods to analyze for strength calculation
- Manual ATR Period:(Default: 14) Period for ATR normalization calculation
- Manual Analysis Timeframe:(Default: 240) Higher timeframe for strength analysis
- Manual Index Weight:(Default: 0.5) Weight given to currency indices vs pairs (0.0 = pairs only, 1.0 = indices only)
- Manual Signal Threshold:(Default: 0.5) Minimum strength differential required for trading signals
#### 📊 Display
- Show Signal Markers:(Default: Enabled) Display triangle markers when signals change
- Show Info Label:(Default: Enabled) Show comprehensive information label with current analysis
#### 🔍 Analysis
- Use ATR Normalization:(Default: Enabled) Normalize strength calculations by volatility for fairer comparison
#### 💰 Currency Indices
- 💰 Use Currency Indices:(Default: Enabled) Include all 8 currency indices in strength calculation for enhanced accuracy
#### 🎨 Colors
- Strong Currency Color:(Default: Green) Color for positive/strong signals
- Weak Currency Color:(Default: Red) Color for negative/weak signals
- Neutral Color:(Default: Gray) Color for neutral conditions
- Strong/Weak Backgrounds: Background colors for clear signal visualization
### 🧠 Smart Optimization Profiles
The indicator automatically selects optimal parameters based on your chart timeframe:
#### ⚡ Scalping Profile (1M-5M Charts)
For positions held for a few minutes:
- Lookback: 5 periods (fast/sensitive)
- Analysis Timeframe: 15 minutes
- Index Weight: 20% (favor pairs for speed)
- Signal Threshold: 0.3% (sensitive triggers)
#### 📈 Intraday Profile (10M-1H Charts)
For positions held for a few hours:
- Lookback: 12 periods (balanced sensitivity)
- Analysis Timeframe: 4 hours
- Index Weight: 40% (balanced approach)
- Signal Threshold: 0.4% (moderate sensitivity)
#### 📊 Swing Profile (4H-Daily Charts)
For positions held for a few days:
- Lookback: 21 periods (stable analysis)
- Analysis Timeframe: Daily
- Index Weight: 60% (favor indices for stability)
- Signal Threshold: 0.5% (conservative triggers)
#### 📆 Position Profile (Weekly+ Charts)
For positions held for a few weeks:
- Lookback: 30 periods (long-term view)
- Analysis Timeframe: Weekly
- Index Weight: 70% (heavily favor indices)
- Signal Threshold: 0.6% (very conservative)
### Entry Timing
- Wait for clear LONG 🚀 or SHORT 🐻 signals
- Avoid trading during NEUTRAL ⚪ periods
- Look for signal confirmations on multiple timeframes
### Risk Management
- Stronger signals (higher relative strength values) suggest higher probability trades
- Use appropriate position sizing based on signal strength
- Consider the trading style profile when setting stop losses and take profits
💡 Pro Tip: The indicator works best when combined with your existing technical analysis. Use currency strength to identify which pairs to trade, then use your favorite technical indicators to determine when to enter and exit.
## 🔧 Key Features
- 28+ Forex Pairs Analysis: Comprehensive coverage of major currency relationships
- 8 Currency Indices Integration: DXY, EXY, BXY, JXY, CXY, AXY, SXY, ZXY for enhanced accuracy
- Smart Auto-Optimization: Automatically adapts to your trading style and timeframe
- ATR Normalization: Fair comparison across different currency pairs and volatility levels
- Real-Time Signals: Clear LONG/SHORT/NEUTRAL signals with visual markers
- Performance Optimized: Efficient tuple-based data requests minimize external calls
- User-Friendly Interface: Simplified settings with comprehensive tooltips
- Multi-Timeframe Support: Works on any timeframe from 1-minute to monthly charts
Transform your forex trading with the power of currency strength analysis! 🚀
Release Notes
## 📈 Latest Update: Advanced Market Scanner
### 🎯 NEW FEATURE: Real-Time Currency Divergence Scanner
I added a powerful market scanning capability that transforms this indicator into a comprehensive trading dashboard!
#### ✨ What's New:
- Live Divergence Table - Displays top currency pair opportunities directly on your main chart using advanced force_overlay technology
- Real-Time Market Scanning - Automatically scans 24 major forex pairs and ranks them by divergence strength
- Customizable Display - Choose between top 3 or top 5 divergences based on your trading preference
- Smart Integration - Uses existing currency strength data with zero performance impact
- Color-Coded Signals - Green for LONG opportunities, Red for SHORT setups, with precise divergence percentages
#### 🚀 Key Benefits:
- Market Opportunities at a Glance - No more manually checking multiple pairs - see the best setups instantly
- High-Probability Setups - Automatically identifies pairs with the strongest currency divergences
- Time-Saving - Eliminates the need to scan dozens of charts manually
- Professional Layout - Clean table overlay on main chart for easy viewing while maintaining indicator functionality
- Multi-Timeframe Aware - Adapts to your smart optimization settings for scalping, intraday, swing, or position trading
#### 🎮 How to Use the New Scanner:
- Enable in the Display settings
Pine Script® Show Divergences - Choose between 3 or 5 divergences to display
- Watch the top-right corner of your chart for live opportunities
- Look for pairs with the highest divergence percentages for best setups
- Use the color coding: Green = LONG signals, Red = SHORT signals
#### 📊 What the Scanner Shows:
Example Display:
🎯 TOP DIVERGENCES | 240
EURJPY | LONG +1.45%
GBPCHF | SHORT -1.22%
AUDCAD | LONG +0.98%
This means EUR is significantly stronger than JPY, GBP is much weaker than CHF, and AUD is stronger than CAD - giving you clear directional bias for these pairs.
#### ⚡ Performance & Technical Details:
- Zero Additional Load - Uses existing currency strength calculations, no extra security requests
- Force Overlay Technology - Advanced PineScript technique allows table on main chart while indicator runs in separate pane
- Optimized Sorting - Efficient algorithm ranks 24 pairs by absolute divergence value in real-time
- Memory Efficient - Lightweight implementation with minimal impact on script performance
#### 🎯 Perfect for:
- Day Traders - Quickly identify intraday momentum opportunities
- Swing Traders - Spot multi-day currency strength trends
- Scalpers - Find short-term high-probability setups
- Portfolio Managers - Monitor overall forex market dynamics
### 🔄 Compatibility & Settings
- Works with all existing smart optimization profiles (Scalping, Intraday, Swing, Position)
- Fully compatible with currency indices integration
- Respects all ATR normalization and threshold settings
- Can be toggled on/off without affecting main indicator functionality
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This update maintains all existing functionality while adding powerful market scanning capabilities. The divergence scanner uses the same proven currency strength methodology that has made this indicator popular with professional traders.
🚀 Transform your trading with real-time market scanning - never miss a high-probability forex opportunity again!
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.