Power of XXX indicator description.
The indicator is showing relative actual strength of currency XXX.
The indicator calculates its value of close prices of 7 pairs containing currency XXX.
The indicator can be used for MEAN REVERSION based strategies.
Lets assume XXX YYY currency pair scheme where XXX is BASE currency and YYY is QUOTEcurrency.
Place Power of XXX into your chart first and Power of YYY second.
You can have 2 relevant situations.
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Indicators curves are close to each other. It means there is higher probability that the price of the pair XXX YYY will go UP.
Do not take Power of .. signals separately from overall market situation (SR levels/zones and so on).
-
Indicators curves are FAR from each other. It means there is higher probability that the price of the pair XXX YYY will go DOWN.
Do not take Power of .. signals separately from overall market situation (SR levels/zones and so on).
