Currency Strength Index CSICurrency Strength Index (CSI)
The Currency Strength Index (CSI) is a multi-currency momentum indicator designed to measure the relative strength of the 8 major currencies:
EUR, GBP, AUD, NZD, USD, CAD, CHF, JPY
Instead of analyzing a single pair in isolation, this indicator calculates the underlying strength of each currency by mathematically combining all 28 major cross pairs.
🔬 How It Works
The CSI:
Uses a Linear Weighted Moving Average (LWMA) of price
Measures the percentage change of the LWMA
Combines 7 cross pairs per currency
Applies mathematical decorrelation
Produces a normalized strength value
Displays results in a separate window for clean comparison
Each currency’s value reflects its aggregate momentum across the entire FX market, not just one pair.
📊 What It Shows
8 real-time strength lines
Zero line equilibrium reference
Toggle on/off for each currency
Top-right display showing:
Base vs Quote strength difference
Clear directional bias
Example:
“AUD stronger than CHF by 2.47”
🎯 How To Use It
1️⃣ Trade Strong vs Weak
Buy the strongest currency against the weakest.
Example:
Strongest: AUD
Weakest: CHF
→ Look for AUDCHF longs
2️⃣ Confirm Trend Strength
If a pair is trending and:
Base currency is strengthening
Quote currency is weakening
→ Higher probability continuation
3️⃣ Avoid Weak Momentum
When currencies cluster near zero:
→ Market likely ranging or low conviction
⚙ Inputs
MA Period – Controls smoothing
MA Delta – Controls sensitivity
Currency visibility toggles
Lower delta = faster reaction
Higher period = smoother lines
💡 Why This Is Different
Most “strength meters” use simple averaging.
This CSI:
Uses mathematical pair inversion logic
Accounts for base/quote structure
Uses weighted momentum
Reflects broader intermarket flow
You are trading currencies — not just pairs.
⚠ Disclaimer
This tool measures momentum and relative strength.
It should be used alongside structure, liquidity, and risk management.
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