The Currency Strength Indicator for Breakouts and Reversals

$349
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No more indecision

  • Do you always miss breakouts or reversals as they happen?

  • Does your existing strategy need instant confirmation?

  • Do you want a simpler strategy, to save time?


This indicator was made to solve the problems of retail day-traders like you.


It does masses of chart analysis in microseconds, just once per bar, and alerts you when there is something of interest on a pair you're watching.


  • Never sure if price is going to breakout, despite PA and TA signals?

  • Never sure if your reversal is going to breakout? Do you trust that pinbar?

These are common complaints among traders. It's tough to keep stepping in front of the train every time we take a trade. We want every assurance that the train's brakes are indeed on and the opportunity will materialize.


This automated method works for both breakouts and reversals. It does this by having one setting for each:

  • Breakouts having a deeper lookback into recent prices across both currencies.

  • Reversals use shallower lookbacks to compare extremes of divergence within ranges.


How you benefit

Using the Collected Currency Strength Indicator, you can see at a glance when currency strengths are diverging (trending) or converging (ranging). Ranging signals can be combined with your usual price action (PA) or technical analysis (TA) methods to further confirm or deny an entry or exit. You are then notified when these situations occur, automating away the majority of the day-to-day charting work.


The indicator auto-selects the chart's currencies (EUR + USD on EURUSD chart, etc.) then shows index lines for each, and a green/red bias line summarizing the currencies' relative movements.


EXAMPLE
If EUR was above its index MA but is now below it and falling, and USD was below its index MA but is now above it or rising, the line will change from green to red on the EURUSD chart.


The bias line also highlights where the currencies have diverged on the normalized scale by a threshold amount, indicating extreme levels are being entered, relative to the indicator's lookback period.


It is coded in MQL5, for MT5 or MetaTrader 5 because it is the most widely available trading platform terminal and many use MT5 just for charting, due to its wealth of free indicators, before placing their trades in a different platform of their choice (cTrader, TradingView etc.)


It works on all currency pairs. For indices it is in beta, with positive initial testing, and Gold is also in beta testing. We offer a whole-market strength scanner separately. It highlights which pairs are trending, which are ranging, and which are the most extreme in doing so, hinting at which pairs to look at without opening 30 chart windows.

All of our indicators are resource-efficient, only running calculations on bar closes, so no repainting and no calculations running 1000s of times per second pointlessly. Your CPU usage will remain low - this has been checked on legacy hardware from circa 2010.


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Why buy *this* currency strength indicator?

- It is the most reactive and smoothed strength index available (we've checked a lot!)
- Get alerts to your phone or chart pop-up the second signals occur on a closed bar - less time watching
- Reduce the stress of constant calculations and criteria checks


Watch the demo here: https://www.youtube.com/watch?v=xjrqwWFzdDA

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FAQ

Why trade currency strengths?

In forex we have the fortunate situation of being able to split pairs into their currency parts. This is not possible with equities, crypto etc. When we do that we can create an aggregate index of the direction of movement of each currency, then map that against the second currency in the pair (known as the "base" and the "quote" currencies). If the index lines are close or on top of each other, the price is typically ranging tightly. If they are diverged, say the GBP is at the upper extreme and the USD at the lower, then we know that GBP is trending over a longer lookback period, or soon to revert over a shorter lookback period. We can then couple this knowledge with support and resistance areas and make an informed decision.

Why use your strength index and not the other one I've found online?

Other similar indicators suffer from several problems. Namely, a lack of smoothing, causing erratic entries, an under-developed signal based off of crude metrics, and not accounting for relative movement. They are rarely as customisable for reactivity, nor are they programmed to protect your PC's resources, churning through 1000s of calculations a second unnecessarily, wasting energy and slowing down your machine, potentially getting overrun on occasion leading to a lack of system stability.

How is the strength index calculated?

A normalized currency index (basket of 7 pairs per currency) for most Forex pairs, Gold and indices (beta).

Why do you normalize the index?

By normalizing we can find how strong the current move is relative to the lookback period used in the normalization. This gives a fixed scale that means you can set it once to your preferred settings and not have to change it for every currency. It self-adjusts to the volatility of the market. So a strong trend would send a non-normalized index sky high, off the chart, making the other currency(-ies) impossible to read, and provide an unrealistic frame of reference. Setting the lookback period to something quite lengthy gives a very good feel for when strengths are reaching extremes, comparing current and previous sessions.

Why sell it instead of trading it?

I'm doing both. Forward testing results will be posted continually. Once I reach my capital goals I will remove the indicator from sale but currently there is much to be paid for with a young family, and only a modest capital pot to trade with.

What platforms are supported?

So far you can use this on MT5. It has been fully optimized for the lowest resource use possible, meaning most 10+ year old PCs can handle multiple instances of it running without spinning up your fans. You can of course place your orders on any platform, but if you can do your charting in MT5 then you can use this.

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You will be asked to provide your trading account number (no credentials required, just account number) to lock your indicator to your account, as well as the name of your broker for any specifics in currency names to adjust in the code. That is the only information asked of you and the indicator requires no permissions to access the web or use DLLs. Once you're running it, it's all yours. I am a big proponent of personal privacy. You will be warned in advance when it is time to update to a newer version.

Simplify your trading today

Trade what really matters: value areas on the chart and relative strength differentials between currencies. Price is your timeframe.



A note on the price

The indicator's price is set to an amount suited to traders who see the value in automation, sensible real-world strategies and stability in a trading tool. With this kind of customer we can better serve its users.

The price is also set to allow you to recoup the cost in a matter of weeks or months, assuming a modest account size.

The price will rise as more copies are sold, so lock in this introductory price now.

Crypto is also accepted. Please get in touch for latest prices and addresses.

Read more about the indi and some backtesting here:

> https://www.collectedtrading.com/blog/demo-of-trading-bot-for-forex-swing-scalp/

*Video recorded before breakout method widely used. Update to follow.

Buy this

Currency Strength Indicator for MT5

Platform supported
MT5
Pairs supported
Majors, minors, indices, gold
Timeframes supported
All
Hardware required
Post 2010-era CPU
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$349

The Currency Strength Indicator for Breakouts and Reversals

0 ratings
Buy this