4 Currencies_NSC is a Relative Currency Strength indicator designed for Forex markets to measure and display the relative strength of four major currencies: AUD, USD, EUR, and JPY. It calculates each currency’s performance against a basket of others by analyzing pairs such as AUDUSD, AUDEUR, AUDJPY, EURUSD, EURJPY, and USDJPY over a user-defined lookback period. The indicator plots each currency’s strength as a separate line in a dedicated window below the main chart, providing clear visuals without cluttering price action.
Key features include adjustable LookbackPeriod (default 14 bars) for responsiveness or trend stability, and a SmoothingPeriod (default 5 bars) applying an exponential moving average to reduce noise. Calculations are based on bar closes, ensuring no repainting after bar completion. This tool aids in better currency pair selection by highlighting which currencies are strengthening or weakening, helps understand market drivers behind pair movements, and can be tailored to individual trading styles. It may require significant computing resources due to processing multiple pairs simultaneously.