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Trading opportunities depend on how active currency pairs are in Forex. If a currency pair does not make a significant movement, then it is impossible to trade on it.
And when a currency pair is in active movement, then it creates many good times for opening and closing deals. The intensity of the movements will help to determine the special Currency Slope Strength indicator.
CSS MT4 Indicator - Movement Intensity Determinant placed on a chart in MT4
The task of the CSS currency strength indicator is to measure how strong currencies are relative to each other. Initially, the strength of only two currencies was compared, but later the developer of this tool began to compare several currency pairs at the same time. For example, if you need to determine the strength of GBP, then all currency pairs where GBP appears (GBPUSD, EURGBP, GBPAUD, and others) are used.
CSS indicator MT4 Settings
Indicator calculations
The advantage of the CSS indicator is its simplicity. Calculations of values are based on measurements of the slope of the curves of each currency pair. Then all the slope values are added and divided by the number of currency pairs. Thus, the average is obtained. This is a more accurate definition of the strength of a currency. After all, based on one pair, the error could be significant.
The currency pair curves that are calculated are TMA indicators. It is a kind of moving averages, where "T" stands for triangular. The essence of the indicator is similar to the essence of any moving average. However, the calculations differ in that averaging occurs twice. That is, a simple moving average (SMA) is taken, and then the arithmetic average of all SMA values is found.
Indicator signals
When the value of the CSS indicator is positive, then the trend of the currency is upward. With a negative value, the trend is downward; that is, on average, the observed currency is weaker than the others. If the indicator is close to zero, then the strength of the currency is approximately equal to the strength of the currencies being compared to it.
If the curve jumps up or down, this does not mean a change in trend. It is simply a fall and rise in the strength of a currency, that is, its rate of rising or rate of decline. The trend reversal occurs only when the indicator value passes through the zero marks.
The crossing of lines is also a signal here. When the showCrossAlerts function is enabled, the crossing will be accompanied by an audible alert. When two lines cross, it means that a trend change is taking place. It is necessary to take into account the different scenarios in which intersection is possible. For example, when the lines cross inside the channel, not far from the zero levels, traders should not open deals. This is a quiet moment that will not yield good profits. In such a situation, it is best to continue watching the market and wait for other signals.
When currencies cross inside the channel, then cross different channel boundaries, this is a sign of a protracted trend formation. The crossing of the channel boundaries by different lines can occur at different times. The difference does not matter; it can be calculated in weeks. The main thing is that the scheme is observed: the intersection of two lines inside the channel and their going beyond the channel from different sides.
Conclusion
The CSS indicator is a completely original and interesting approach to assessing an asset and the market in general. After practicing with the CSS tool, you will be able to determine and understand the driving force of an individual currency pair, which is formed due to its crosses, as well as build interesting multi-currency trading strategies based on this indicator.
Tip: Can’t open the downloaded archive file (ZIP or RAR)?
Try WinRAR for Windows or The Unarchiver for Mac .
Do you need help with installing this indicator into MT4 for Windows or Mac OS? Our guide HERE will help you.
