Ok, now I think that we are on the same “page”…
Great to hear that!
Since we are dealing with “STRENGTH”, why not use RSI (one of some other options)? It’s values are already “normalized”, and the same for all currency-pairs.
Sure, RSI is an option. At first sight, I’m having the same doubts like in case of Stoch: this kind of ‘hard’ normalization with fixed limits tends to distort the original values and the strenghts of movements. For very wide calculation windows, this issue is minimized, though.
I’ll give it a try tomorrow. Above method (B) is already implemented, looks ok. Need to debug & clean the code, possibly can post tomorrow.
A description of the corresponding EUR index: https://www.theice.com/publicdocs/rulebooks/futures_us/24_ICE_Futures_EURO_Index.pdf .
For comparison, that Euro Index is also implemented.
On the pic, as an appetizer for tomorrow:
Daily TF, top window showing USDx, bottom window EURx, both of them calculating crosses of our 8 major currencies. Reference point is set about 1 month after release of the EURCHF peg early this year, see blue dashed line.
simplex
A good trader is a realist who wants to grab a chunk from the body of a trend, leaving top- and bottom-fishing to people on an ego trip. (Dr. Alexander Elder)