I will end for today with the following screenshot
This indicator tends to compress near the limits similar to that of Stochastic indicator because this is a % based indicator. Sometimes it can show divergence really well. Based on one setting, its showing Long biased divergence on EU. But if you look at higher time frames, then its not there and looks bearish. So does that mean a short term long and a long term short? OR is the opposite the truth? The case when the indicator lines are going up but the price goes the opposite direction, is it showing strength of the price and the direction of price to be the leader?
These are things to think about when using this indicator
The way I have seen it, they flip back and forth. The reason being, when you look at EUR/USD you are looking at EUR and USD specifically. Currency strength indicator is based on EURZZZ and USDYYY currencies. Sometimes EURZZZ can be the leading direction, but sometimes USDYYY can be the leading direction. EUR/USD is one on its own so it alone could contain the leading direction for the rest. I hope I am making sense.
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Focus, Patience, Determination & Order in chaos