Currency Strength v3.0

Currency Strength v3.0
Summary
The Currency Strength indicator is a powerful tool designed to gauge the relative strength of major and emerging market currencies. By plotting the True Strength Index (TSI) of various currency indices, it provides a clear visual representation of which currencies are gaining momentum and which are losing it. This indicator automatically detects the currency pair on your chart and highlights the corresponding strength lines, simplifying analysis and helping you quickly identify potential trading opportunities based on currency dynamics.

Key Features
Comprehensive Currency Analysis: Tracks the strength of 19 currencies, including major pairs and several emerging market currencies.

Automatic Pair Detection: Intelligently identifies the base and quote currency of the active chart, automatically highlighting the relevant strength lines.

Dynamic Coloring: The base currency is consistently colored blue, and the quote currency is colored gold, making it easy to distinguish between the two at a glance.

Non-Repainting TSI Calculation: Uses the True Strength Index (TSI) for smooth and reliable momentum readings that do not repaint.

Customizable Settings: Allows for adjustment of the fast and slow periods for the TSI calculation to fit your specific trading style.

Clean Interface: Features a minimalist legend table that only displays the currencies relevant to your current chart, keeping your workspace uncluttered.

How It Works
The indicator pulls data from major currency indices (like DXY for the US Dollar and EXY for the Euro). For currencies that don't have a dedicated index, it uses their USD pair (e.g., USDCNY) and inverts the calculation to derive the currency's strength relative to the dollar. It then applies the True Strength Index (TSI) to this data. The TSI is a momentum oscillator that is less volatile than other oscillators, providing a more reliable measure of strength. The resulting values are plotted on the chart, allowing you to see how different currencies are performing against each other in real-time.

How to Use
Trend Confirmation: When the base currency's line is rising and above the zero line, and the quote currency's line is falling, it can confirm a bullish trend for the pair. The opposite would suggest a bearish trend.

Identifying Divergences: Look for divergences between the currency strength lines and the price action of the pair. For example, if the price is making higher highs but the base currency's strength is making lower highs, it could signal a potential reversal.

Crossovers: A crossover of the base and quote currency lines can signal a shift in momentum. A bullish signal occurs when the base currency line crosses above the quote currency line. A bearish signal occurs when it crosses below.

Overbought/Oversold Levels: The horizontal dashed lines at 0.5 and -0.5 can be used as general guides for overbought and oversold conditions, respectively. Strength moving beyond these levels may indicate an unsustainable move that is due for a correction.

Settings
Fast Period: The short-term period for the TSI calculation. Default is 7.

Slow Period: The long-term period for the TSI calculation. Default is 15.

Index Source: The price source used for the calculations (e.g., Close, Open). Default is Close.

Base Currency Color: The color for the base currency line. Default is Royal Blue.

Quote Currency Color: The color for the quote currency line. Default is Goldenrod.

Disclaimer
This indicator is intended for educational and analytical purposes only. It is not financial advice. Trading involves substantial risk, and past performance is not indicative of future results. Always conduct your own research and risk management before making any trading decisions.