Overview

The Quantum Currency Strength Indicator has been designed to show you easily and quickly when a currency is moving strongly in one direction or another, either to an oversold state, or to an overbought state. Currencies and currency pairs move constantly from one to the other in all timeframes.

These are the points at which a currency is likely to reverse and change trend. The overbought and oversold regions on the indicator are defined by the solid grey lines at 20 and 80, and once these regions are approached then this is a signal for further analysis on the chart. Using the currency strength indicator on TradingView in multiple timeframes is an excellent way to see whether a currency is rising or falling across several timeframes, adding a further dimension to your analysis, and allowing you to quantify the risk on any trade in a more detailed way.

Whilst this indicator has been designed to show you when currencies are potentially overbought or oversold, the Quantum Currency Strength Indicator will also show you when currencies are in congestion phases as they meander and bunch together. Typically this is seen ahead of major news releases as the currency markets pause and wait before the release.

The indicator is your radar on the market, guiding you to those currency pairs which may be rising strongly or falling strongly, and just as important those pairs which are not moving at present.

Finally, the indicator will also help you to monitor current positions, with the indicator showing you when a currency has moved from one extreme to another and perhaps signaling a potential reversal in the opposite direction.

  • Your Quantum CSI currency strength indicator can be applied to any chart for any symbol. The chart does not influence or affect the appearance or performance of the indicator. For example, you can apply the indicator to a GBPUSD, a EUR/USD, or a USD/CHF, or any other pair. The indicator will display in an identical way on each chart
  • The indicator will work in all timeframes from seconds to minutes, hours and months on the TradingView platform
  • When you first apply the indicator, please allow a few seconds for the data to build in history
  • The dotted grey lines at the top and bottom of the indicator (80 at the top) and (20 at the bottom) are not designed as an entry or exit signal. They are simply there to give a guide as to when a currency is approaching or moving into an oversold or overbought region, in that timeframe

Currency lines

Each currency is represented by a line which is color coded as follows:

  • US dollar – red
  • Euro – orange
  • British pound – yellow
  • Swiss franc – green
  • Japanese yen – magenta
  • Canadian dollar – purple
  • Australian dollar – blue
  • New Zealand dollar – grey

 

To identify each line easily, you can enable the chart’s Indicator Name Label option. Here’s how:

  1. In your TradingView chart page, find the Scales Properties button and click it. It appears as a cog/gear icon located at the bottom right corner of the chart.
  2. A popup menu opens. Hover over the Labels menu item.
  3. Another popup menu appears. Click the Indicator Name Label option to enable it. You can also enable the Indicator Last Value Label option to show each currency’s current value.

Format

By clicking the indicator’s Format button, you can configure the Quantum Currency Strength Indicator’s inputs and style according to your preferences. The Format button appears as a small cog/gear icon beside the name of the indicator at the chart. Clicking the button shows a dialog box for configuring the Inputs and Style options.

Inputs

RSI Period

This setting is used to ‘fine tune’ the internal RSI of the currency strength indicator. Increasing the value makes the indicator less responsive to price movement, thus the steepness of the curves decrease. A higher Period also means currencies are less likely to cross the 80 and 20 lines. Conversely, decreasing it, makes the indicator more responsive to price movement, thus the steepness of the curves increase. A lower period also means currencies are more likely to cross the 80 and 20 lines and also stay there for longer periods of time. The recommended settings are between a minimum of 7 and a maximum of 14. For medium to longer term trading approaches the higher period is recommended (towards 14 or above), whilst for faster scalping trading approaches, a lower period can be applied (towards 7 or below).

Style

TradingView allows you to customize the indicator’s appearance by changing the properties of each of its plots/lines.

USD

This line represents the US Dollar currency on the CSI.

  • Visible by default, you can untick the checkbox beside its name to hide this line in the chart.
  • Color is set to red. You can click the color box to choose another color from a palette.
  • Thickness is set to 2. Slide the knob to the right to increase the line’s thickness further or slide it to the left to decrease it.
  • Type of plot is set to Line. We recommend not changing this setting.
  • The last option allows you to display a horizontal line that helps you track its current level in the chart. Tick the Price Line checkbox to enable this feature.

EUR

This line represents the Euro currency on the CSI.

  • Visible by default, you can untick the checkbox beside its name to hide this line in the chart.
  • Color is set to orange. You can click the color box to choose another color from a palette.
  • Thickness is set to 2. Slide the knob to the right to increase the line’s thickness further or slide it to the left to decrease it.
  • Type of plot is set to Line. We recommend not changing this setting.
  • The last option allows you to display a horizontal line that helps you track its current level in the chart. Tick the Price Line checkbox to enable this feature.

GBP

This line represents the British Pound currency on the CSI.

  • Visible by default, you can untick the checkbox beside its name to hide this line in the chart.
  • Color is set to yellow. You can click the color box to choose another color from a palette.
  • Thickness is set to 2. Slide the knob to the right to increase the line’s thickness further or slide it to the left to decrease it.
  • Type of plot is set to Line. We recommend not changing this setting.
  • The last option allows you to display a horizontal line that helps you track its current level in the chart. Tick the Price Line checkbox to enable this feature.

CHF

This line represents the Swiss Franc currency on the CSI.

  • Visible by default, you can untick the checkbox beside its name to hide this line in the chart.
  • Color is set to green. You can click the color box to choose another color from a palette.
  • Thickness is set to 2. Slide the knob to the right to increase the line’s thickness further or slide it to the left to decrease it.
  • Type of plot is set to Line. We recommend not changing this setting.
  • The last option allows you to display a horizontal line that helps you track its current level in the chart. Tick the Price Line checkbox to enable this feature.

JPY

This line represents the Japanese Yen currency on the CSI.

  • Visible by default, you can untick the checkbox beside its name to hide this line in the chart.
  • Color is set to magenta. You can click the color box to choose another color from a palette.
  • Thickness is set to 2. Slide the knob to the right to increase the line’s thickness further or slide it to the left to decrease it.
  • Type of plot is set to Line. We recommend not changing this setting.
  • The last option allows you to display a horizontal line that helps you track its current level in the chart. Tick the Price Line checkbox to enable this feature.

CAD

This line represents the Canadian Dollar currency on the CSI.

  • Visible by default, you can untick the checkbox beside its name to hide this line in the chart.
  • Color is set to purple. You can click the color box to choose another color from a palette.
  • Thickness is set to 2. Slide the knob to the right to increase the line’s thickness further or slide it to the left to decrease it.
  • Type of plot is set to Line. We recommend not changing this setting.
  • The last option allows you to display a horizontal line that helps you track its current level in the chart. Tick the Price Line checkbox to enable this feature.

AUD

This line represents the Australian Dollar currency on the CSI.

  • Visible by default, you can untick the checkbox beside its name to hide this line in the chart.
  • Color is set to blue. You can click the color box to choose another color from a palette.
  • Thickness is set to 2. Slide the knob to the right to increase the line’s thickness further or slide it to the left to decrease it.
  • Type of plot is set to Line. We recommend not changing this setting.
  • The last option allows you to display a horizontal line that helps you track its current level in the chart. Tick the Price Line checkbox to enable this feature.

NZD

This line represents the New Zealand Dollar currency on the CSI.

  • Visible by default, you can untick the checkbox beside its name to hide this line in the chart.
  • Color is set to gray. You can click the color box to choose another color from a palette.
  • Thickness is set to 2. Slide the knob to the right to increase the line’s thickness further or slide it to the left to decrease it.
  • Type of plot is set to Line. We recommend not changing this setting.
  • The last option allows you to display a horizontal line that helps you track its current level in the chart. Tick the Price Line checkbox to enable this feature.

Overbought

This is a horizontal line which serves as a guide indicating a currency has reached a state of overbought when its line crosses above this threshold.

  • Visible by default, you can untick the checkbox beside its name to hide this line in the chart, (but we recommend keeping this visible always).
  • Color is set to grey. You can click the color box to choose another color from a palette.
  • Thickness is set to 1. Slide the knob to the right to increase the line’s thickness.
  • Line style is dotted. You can choose from a drop-down menu 2 other options, either solid or dashed.
  • The last property allows you to change the level of the Overbought line. You are free to change this according to your preference but we recommend keeping it at 80.

Oversold

This is a horizontal line which serves as a guide indicating that a currency has reached a state of oversold when its line crosses below this threshold.

  • Visible by default, you can untick the checkbox beside its name to hide this line in the chart. (but we recommend keeping this visible always)
  • Color is set to gray. You can click the color box to choose another color from a palette.
  • Thickness is set to 1. Slide the know to the right to increase the line’s thickness.
  • Line style is dotted. You can choose from a drop-down menu 2 other options, either sold or dashed.
  • The last property allows you to change the level of the Oversold line. You are free to change this according to your preference but we recommend keeping it at 20.

Precision

This determines the number of decimal places the indicator uses to display the current value of its lines. You can adjust this by choosing from a drop-down list.

Scale

You can choose either Pin to Right or Pin to Left.

  • Pin to Right is the default option. This displays the indicator labels at the right-hand side of the indicator.
  • Pin to Left displays the indicator labels at the left-hand side of the indicator.