Introduction
The Currency Array indicator has been developed to measure and display quickly and easily the speed at which currency pairs are rising and falling. Just like the Quantum Currency Matrix, the Quantum Currency Array indicator displays the complete array of 28 currency pairs derived from the 8 major currency pairs as featured in the Quantum Currency Strength Indicator (CSI):
- US Dollar
- Euro
- British Pound
- Swiss Franc
- Japanese Yen
- Canadian Dollar
- Australian Dollar
- New Zealand Dollar
In displaying all the pairs in an array this gives an instant view of the relative trend strength and displays this relationship in a visual and intuitive manner in three ways. Each one shows a different perspective and insight into the complex world of currency strength concepts.
Ranked list
First, the indicator displays 28 major currency pairs in a ranked list ordered by the strength of the trend. The currency pair with the greatest momentum and steepest uptrend appears at the top of the list while the one with the greatest momentum and steepest downtrend appears at the bottom. All the other pairs are then ranked accordingly, and color coded from red at the bottom, to yellow and into green at the top of the ranking table. Currency pairs in congestion appear in the middle of the table.
In the ranked list, alongside the ranks of currency pairs is a second column that provides signals as to whether a particular currency pair is approaching an overbought or an oversold state. These are then signaled in two ways. First a signal the currency pair is approaching such a state, and second when it has arrived in this condition. These are coded as follows:
- (OB) – This signal appears as a dark shade of blue which means that the currency pair is APPROACHING an OVERBOUGHT state.
- OB – This signal appears as a bright shade of blue which means that the currency pair is IN an OVERBOUGHT state.
- (OS) – This signal appears as a dark shade of red which means that the currency pair is APPROACHING an OVERSOLD state.
- OS – This signal appears as a bright shade of red which means that the currency pair is IN an OVERSOLD state.
Once any of these signals appears beside a currency pair, it signals the potential impending change in direction of the trend, which can then be considered further by analysis of the chart. For example, if the EURGBP is seen at the very top of the list and beside it is an OB signal, it means that although the uptrend is seemingly strong, the bullish strength driving it may be reaching an exhaustion point, starting to diminish with a possible change in direction in due course.
Currency Array
Secondly, it displays the same 28 major currency pairs as lines in a graph that diffuse out into the array and with varying magnitudes depending on the strength and inclination of each currency pair’s trend. This means the order in which they appear vertically follows the same ranking in the table alongside, but as a graphical display, instantly, visually, and numerically revealing the actual steepness of each currency pair’s trend. As you would expect the currency pair with the fastest and steepest uptrend also has the steepest UPWARD line in the graph. Likewise, the fastest and steepest downtrend also has the steepest DOWNWARD line in the graph. Currency pairs with the least steepness in their trend (and in congestion) are found closest to the 0 level of the graph and appear horizontal.
You can also see each line in the array has one of 2 different line styles. Its style depends on the state of its corresponding currency pair as defined above.
- Dashed – This means the currency pair is trending, but not close to an overbought or oversold condition.
- Solid – This means the currency pair is in an overbought or oversold condition.
One of the most powerful features of the array when watching trends develop in real time is not only considering one pair, but how pairs move together ‘en masse.’ This can give you huge confidence when taking a position in the market, as you will see all the currency pairs for that complex “marching together” stretching higher or stretching lower and reflecting market sentiment for that currency and its associated pairs. This is immensely powerful, and will give you the confidence, not only to take a position, but then to hold it to maximize your profits from the trend.
Currency filter
The Currency Array indicator allows you to filter the currency pairs relevant to the currency you are analysing. Just like the Quantum Currency Matrix indicator, a set of toggle buttons is provided beside the ranking table which you can click to select a currency:
- USD is the red button that selects all currency pairs that contain the US Dollar.
- EUR is the orange button that selects all currency pairs that contain the Euro.
- GBP is the yellow button that selects all currency pairs that contain the British Pound.
- CHF is the green button that selects all currency pairs that contain the Swiss Franc.
- JPY is the magenta button that selects all currency pairs that contain the Japanese Yen.
- CAD is the purple button that selects all currency pairs that contain the Canadian Dollar.
- AUD is the blue button that selects all currency pairs that contain the Australian Dollar.
- NZD is the white button that selects all currency pairs that contain the New Zealand Dollar.
Click them once to filter, and then click again to remove the filter. When a certain currency filter is in effect, the relevant currency pairs in the table appear in color. Meanwhile, all relevant currency pairs in the array are the only ones displayed.
Divergence
And this leads on to the third aspect of the Currency Array indicator which is this – it will give you an instant heads-up to divergence across a currency complex, and the easiest example here is with the Japanese yen which is the counter currency for the major and cross pairs. On the array we should expect to see all the currency pairs on one side of the midpoint or the other. After all, if the flow of sentiment for the Yen is universal, then we would expect to see all the currency pairs aligned accordingly, whether selling or buying the Japanese Yen. If not, then we have some divergence, and the flow of sentiment is not universal. If you are trading a pair which is perhaps counter to broad sentiment, then this is a high-risk proposition. The currency array will tell you this instantly and visually and across all the timeframes with a single click and on ONE chart. No need to try to scan 28 charts. It is all here for you.
Dynamic graded color coding
One of the coolest features we have introduced across all our indicators is the dynamic graded color coding, found in both the ranked list and the graph which makes analysis intuitive and fast. You can probably see instantly just from the images how easy it is, but here is a walkthrough.
The currency pairs appear as a color in the range of a green-yellow-red gradient (in that order). Simply put, the color of each currency pair varies depending on its value, in this case the steepness of the trend:
- Green shades – the steepness of the currency pair’s trend is positive and is well above the fulcrum of zero.
- Yellow shades – the steepness of the currency pair’s trend is relatively flat and around the fulcrum of 0. It can either be positive or negative but trails the numbers closest to 0.
- Red shades – the steepness of the currency pair’s trend is negative and is well below the fulcrum of zero.
The same color gradation applies to the array itself. It is important to note the yellow levels are not precisely in the middle of the list (rank 14 of 28). The gradation of color is dynamic and hence the transition of colors will depend entirely on the steepness of the trend of each currency pair as explained above. As with all our other indicators, this is dynamic and is constantly shifting in real time to reflect the ebb and flow of sentiment across the timeframes.
Getting Started
Here are some further details on the Currency Array indicator to help you get started:
For best results, please use the Quantum Currency Array in a forex chart preferably one with high tick rate like EURUSD and other USD pairs. The indicator will work in all timeframes from seconds to minutes, hours and months on the NinjaTrader 8 platform.
The indicator occupies its own indicator window in the chart. We recommend expanding the indicator vertically to get a complete view.
The indicator works in all timeframes.
When you first apply the indicator, please allow a few seconds for the data to build in history.
Currency Dashboard
By itself, the Quantum Currency Array indicator is a powerful trading tool for identifying trading opportunities, quickly, easily, and on ONE chart. However, it was developed as part of what we like to call the Quantum Currency Dashboard which consists of the following indicators:
- Quantum Currency Strength Indicator (CSI)
- Quantum Currency Matrix
- Quantum Currency Array
- Quantum Currency Heatmap
These four indicators then provide a unique and compact insight into all the various aspects of strength and weakness for both currencies and currency pairs, from trend and momentum to overbought and oversold. What is unique is that using four charts, you are then able to monitor the myriad combinations of strength, weakness, momentum, congestion and divergence across the entire forex complex at a click of a button. And even more powerfully, giving you the confidence to get in and stay in for maximum profits. No more missed opportunities, no more struggling with multiple charts, and no more trader regret, whatever your trading style or approach.
Installation
Open your NinjaTrader 8 platform and select a chart.
Right click the chart to bring up a menu which looks like the following image:
Select Indicators… which will open the following window. Alternatively, you can open this window by clicking the Indicators button in the chart toolbar or by pressing Ctrl + I while focused on the chart.
In the Indicators window under Available section, go to Quantum > Quantum Currency Array and click it to select the indicator. Once selected, click “add” under the Configured section which will put it on the list of active indicators to be added in the chart.
Before clicking the OK or Apply button to complete, the indicator has several configurable options. You can click the Apply button at any time, and this will apply any changes you have made to the indicator without closing the window. This will allow you to see the changes you have made to the indicator, without closing with the OK button or the Cancel button.
Configuration
All user input can be configured at the right-hand side of the Indicators window under the Properties section. These are the default settings when you add the indicator in a chart.
Main Settings
Alert
The following settings affect the indicator’s alert notifications displayed in the Alerts Log. You can open the Alerts Log from your NinjaTrader 8 client’s menu bar in the main window at New > Alerts Log.
Alert On Overbought
When enabled, the indicator sends an alert notification in the Alerts Log when one or more currencies are in the Overbought state.
Alert On Oversold
When enabled, the indicator sends an alert notification in the Alerts Log when one or more currencies are in the Oversold state.
Alert Rearm Time (Seconds)
This adds a delay to the next alert notification, expressed in number of seconds.
Alert BG Color
This setting allows you to customize the background color of the indicator’s messages as they appear in the Alerts Log.
Alert Text Color
This setting allows you to customize the color of the text as the indicator’s messages appear in the Alerts Log.
Alert Sound File
You can change here the sound file the platform uses when this indicator triggers an alert. By default, it uses the Alert1.wav file packaged with your NinjaTrader installation. Please make sure that the file is supported and the absolute path to the sound file is entered correctly.
Parameters
Look Back
This determines the scope of the Currency Array’s calculations to measure the strength of the trend of each currency pair. It is expressed in number of bars that starts in the Look Back bar and ends in the most current bar.
OBOS Period
This parameter is a factor to calculating the Overbought/Oversold (OBOS) signals of each currency pair and it is expressed in number of bars.
USD Button Color
Sets the color of the USD toggle button.
EUR Button Color
Sets the color of the EUR toggle button.
GBP Button Color
Sets the color of the GBP toggle button.
CHF Button Color
Sets the color of the CHF toggle button.
JPY Button Color
Sets the color of the JPY toggle button.
CAD Button Color
Sets the color of the CAD toggle button.
AUD Button Color
Sets the color of the AUD toggle button.
NZD Button Color
Sets the color of the NZD toggle button.
Bookmarked Currency Pairs
This helps you keep track of currency pairs wherever they are in the list. To bookmark a currency pair, simply enter its symbol (without any prefix or suffix) in this field like so:
eurusd
You can bookmark multiple currency pairs at the same time by adding a space between them. For example, if you like to bookmark EURUSD, AUDCHF and USDJPY, simply enter the following value in this field:
eurusd audchf usdjpy
All bookmarked currency pairs are given a distinct color so you can see them easily in the constantly changing list. They are also not affected by the currency filters.
Increase Cell Size
Increases the size of the indicator’s grid cells in increments of 1. It can be any value from 0 to 15.
Increase Font Size
Increases the size of the text within the indicator in increments of 1. It can be any value from 0 to 10.
Other Settings
Data Series
Input Series
Opens the indicator Input Series dialogue which allows you to select the source of data for your indicator’s calculations.
Setup
Calculate
Sets the frequency at which the indicator performs its calculations.
Label
The label of the indicator’s instance displayed on the chart.
Maximum bars look back
Determines the maximum number of bars the indicator can look back to perform calculations on historical data. This is set to 256 by default (the most memory-friendly setting), but it can be changed to “infinite” to allow for a greater look back period.
Visual
Auto scale
When enabled, the indicator will be included in the chart panel’s vertical automatic scaling.
Displacement
Sets the number of bars by which to displace the indicator plots.
Display in Data Box
Enables or disables the inclusion of the indicator’s plot values in the Data Box
Panel
Sets the panel in which the indicator is plotted. If you select “Same as input series,” the indicator will be linked to the Input Series and automatically move if the Input Series is modified to a different panel.
Price marker(s)
When enabled, the indicator value is plotted in the axis selected under the “Scale Justification” property.
Scale justification
Sets the scale on which the indicator will be plotted. Possible values are “Right,” “Left,” and “Overlay”.
Visible
Enables or disables visibility and function of the indicator on the chart.
Unloading the indicator
Here are the steps to remove the indicator in the chart.
Right-click on the chart then select Indicators… from the menu. Select Quantum Currency Array from the Configured section and click “remove” then OK to confirm and the indicator should be unloaded from your chart.
Using the Quantum Currency Array in the NinjaTrader Market Analyzer
Valid Rows
The Quantum Currency Array focuses on forex and can be used in a specific set of instruments only. The row instrument must be one of the 28 currency pairs from the combinations of the 8 major currencies in the Quantum CSI (USD, EUR, GBP, CHF, JPY, CAD, AUD, NZD).
Adding the Quantum Currency Array as a Market Analyzer Column
Here are the basic steps to add the Quantum Currency Array in the Market Analyzer:
Make sure valid rows are present in the Market Analyzer window.
Right-click anywhere in the Market Analyzer window then select “Columns…” in the context menu.
The Columns window appears. In the Available section, go to QuantumMarketAnalyzerColumns folder then double-click the Quantum Currency Array to add the indicator as one of the columns in the Market Analyzer.
Select the type of information you like to display using the Column drop down menu under the Properties section of the indicator.
Set the timeframe of the indicator in Properties > Data Series section with the following user inputs:
Type – select a time-based series such as Minute or Day
Value – set the interval for the type of series selected above
When running the indicator in timeframes less than Hourly intervals, please configure the “Load data based on” property to “Days” and the “Days back” property to the default value of 5 days to ensure that there is enough data for the indicator to work with.
After you have finished all your configurations, click OK to confirm your chosen settings and to add the indicator as a column in your Market Analyzer window.
Column Options
The Quantum Currency Array is a multi-faceted indicator that can display different types of signals which can be selected through its Column drop down menu found under the Properties section. You can customize the indicator’s function in the Market Analyzer by selecting any of the options enumerated below.
- Rank – displays the current rank of the currency pair as calculated by the Currency Array
- OBOS – displays the current status of the currency pair which can be any of the values below. If the status is neither of these then the current RSI value is displayed.
- OVERBOUGHT
- APPROACHING OVERBOUGHT
- OVERSOLD
- APPROACHING OVESOLD
- Array – displays the current numerical value of the currency pair’s trend strength as calculated by the Currency Array.
Tip: You can change the Label property of the column to describe what type of signal you choose to display.
