Some Forex strategies require the calculation of entry point parameters using the conditional strength of the currency. The CSS indicator is used to measure the strength of currencies against each other. Simply put, it shows which currency is currently stronger in the pair - then the pair will move towards you. This is a simple condition on which the indicator is based.
Earlier versions of the indicator calculated the ratio of only two currencies in a pair. Later, however, it became necessary to compare all instruments and change the calculation method. The key quality of this indicator is its simplicity. An indicator deviation from zero means that the currency indicated by the indicator is dominant. When the indicator crosses the zero level, the trend reverses. Despite their simplicity, these signals contain good potential and experience of many Forex traders.
CSS options
• CSS is a multicurrency indicator.
• It is used in H4 and D.
• It can be used 24 hours a day.
CSS Pointer Algorithm
The algorithm of the Currency strength meter indicator is used for calculations.
The strength of the movement is determined by the slope of the line. The signals from the TMA are processed by the CSS algorithm, and we receive the signal without delay. For example, to gauge the strength of the Canadian dollar, the indicator measures the slope of all CAD instruments and calculates an average.
The line going up means the growth of the instrument, the line going down means the decrease. If the line moves horizontally, it means steady impulse or no impulse. The slope shows the strength of the currency: the steeper the slope, the stronger the instrument.
However, keep in mind that the indicator does not show the direction of the trend, but only the strength of the currency. It does not give any signals about the trend in the market, it just predicts that one currency will be stronger than another.
