The Header Line displays the settings for the FXI - MultiBar indicator. They are as follows:
- H1 = Timeframe -- The left most text indicates the timeframe that is being analyzed. In the image above, the "H1" represents that 1 hour bars are being examined.
- PER(14) = Periods -- The next element shows how many periods back are being examined. The "PER(14)" indicates that 14 periods back are being examined to judge the strength of each individual currency of a pair.
- EMA(3) = Smoothing -- The third item displays the type and number of periods for the smoothing of the analysis. We calculate the strength of each individual currency of a pair and then smooth the results by the number of periods and with an averaging methodogy described by this item. The "EMA(3)" shows that the indicator is using an Exponential Moving Average over 3 periods to smooth the results.
- PRC(T) = Price Type -- This element describes the type of price that is being used for the calculation. The "PRC(T)" describes a Typical price which is the (H+l+C)/3.
- AVG = Calc Type -- The last item describes whether we are averaging of summing the results. The "AVG" shows that we are averaging the strenthg of each currency in the pair against all other individual currencies as opposed to summing the strength of each currency in the pair against all other currencies.
The body displays the data of the FXI - MultiBar indicator. The individual elements are as follows:
If you are interested in trying the FXI - MultiBar indicator, please go to the Downloads page to get the setup package.
- Red line -- The red line is the internal strength of the front most currency. For the EURUSD, the red line will represent the measured strength of the EUR.
- Green line -- The green line is the internal strength of the front most currency. For the EURUSD, the red line will represent the measured strength of the USD.
- Histogram Bars -- The histogram bars show the difference in strength between the red line and the green line. It is the internal measure of internal momemtum of based on the relative strengths of each currency of a pair. In the image above, when the red line is crossed down below the green line, and the histogram is negative, you should have seen or will expect to see a downward move in the EURUSD pair.