FOREX Currency Power - MetaTrader 5 Expert | MT5 EA Download - MetaTrader 5 Resources

MetaTrader 5 allows the creation of synthetic instruments. The price of such instruments may depend on the current value of many financial instruments.

An example of such an instrument in the stock market is a stock market index . The indices in the foreign exchange market are the US dollar index and the euro .

In trading, such symbols allow you to detect early the beginning and end of global market movements.

We can create a currency strength indicator by averaging the closing prices over a certain number of one-minute bars (5 in this case) of the corresponding currency pair relative to the current position of the high/low range.

The strength of a Forex currency in this example is calculated using the following formula:

<Foreign exchange.Euro> = (Euro USD + Euro GBP + EUR CHF + EUR JPY)/4
< Forex. USD > = (USD CHF + USD EUR + USD GBP + USD JPY)/4
< Forex. GBP> = (GBP USD + GBP EURO + GBP PCHF + GBP JPY)/4
< Forex. Japanese yen > = (Japanese yen USD + Japanese yen Euro + Japanese yen British pound + Japanese yen Swiss franc)/4
< Forex. Swiss franc > = (CHF USD + CHF GBP + CHF JPY + CHF EUR)/4

In this example, the currency's strength is plotted on a scale from 0 to 100, with the center line crossing the 50 level. The sum of currency strength and weakness at any moment is equal to 50, that is. Currencies move at the expense of other currencies. Global movements in the U.S. dollar are reflected in the stock and commodity markets, as well as the foreign exchange market (because all markets are interconnected).

Copy the CurrencyPowerIndex.mqh file to \MQL5\Include.

After starting FOREX_Currency_Power.mq5, the following synthetic instruments will appear in the market observation window: FOREX.EUR.M5, FOREX.USD.M5, FOREX.GBP.M5, FOREX.JPY.M5, FOREX.CHF.M5:

Figure 1. Synthetic instruments FOREX.EUR.M5, FOREX.USD.M5, FOREX.GBP.M5, FOREX.JPY.M5, FOREX.CHF.M5 in Market Watch

Figure 2. Live chart of the synthetic instrument FOREX.EUR.M5

Figure 3. Live chart of synthetic instrument FOREX.USD.M5

Figure 4. Live chart of the synthetic tool FOREX.GBP.M5

Figure 5. Live chart of the synthetic tool FOREX.JPY.M5

Figure 6. Live chart of the synthetic tool FOREX.CHF.M5

Figure 7. The strength of the euro, US dollar, British pound, Japanese yen, and Swiss franc

Attachment download

📎 currencypowerindex.mqh (10.3 KB)

📎 forex_currency_power.mq5 (9.4 KB)

Source: MQL5 #19544