How to calculate Absolute Currency Strength

[amin_mohammadi]

Hello Everyone,

How I can calculate Absolute Currency Strength.

Please look at this link for more details:

http://www.articlesbase.com/currency-trading-articles/how-to-trade-with-relative-rcs-and-absolute-acs-currency-strength-3100840.html

Thank you very much

[Mehrdad Shiri]

hi;

about this excel file ( related to above ):

what is your suggestion for " high, low " time frame ?

if we use D1 time frame to take ( high,low ) and then calculate " Total Strength " , and then use it for our signal in h4 time frame, is it good?

thank's in advance.

[amin_mohammadi]

TIMisthebest:

hi;

about this excel file ( related to above ):

what is your suggestion for " high, low " time frame ?

if we use D1 time frame to take ( high,low ) and then calculate " Total Strength " , and then use it for our signal in h4 time frame, is it good?

thank's in advance.

I don't think so. the total strength calculated in the excel file is Relative Strength also

<REMOVED BY MODERATOR>

this website calculates absolute strength. but I couldn't run it.

Please check this link:

https://en.wikipedia.org/wiki/Absolute_currency_strength

[amin_mohammadi]

TIMisthebest:

hi;

about this excel file ( related to above ):

what is your suggestion for " high, low " time frame ?

if we use D1 time frame to take ( high,low ) and then calculate " Total Strength " , and then use it for our signal in h4 time frame, is it good?

thank's in advance.

As far as I know Absolute strength can be calculated using close prices.

I put all the 8 currencies in a matrix like below:

      USD EUR AUD CAD JPY NZD CHF GBP

USD 1    x1    x2    x3   x4     x5    x6   x7

EUR 1/x1  1

AUD .             1    

CAD

JPY

NZD

CHF

GBP

which every item is close price of a pair currency

if a pair currency like USDEUR doesn't exist its value will be 1/EURUSD.

so the problem is finding every currencies value (I think using Eigenvalues).

[Imtiaz Ahmed]

thanx for sharing.....

[Mehrdad Shiri]

thanx for sharing.....

[Francis Dogbe]

TIMisthebest:
thanx for sharing.....

Thanx for sharing once more

[Roler100]

Doesn't a currency heat map estimate currency strength and weakness in a similar way

[Olawale Adenagbe]

Roler100:
Doesn't a currency heat map estimate currency strength and weakness in a similar way

Yes, a Currency Heat Map estimates currency strength and weakness in a similar way. Various implementation however uses different formulae in calculation.