Currency Strength meter indicators are interesting to many traders and have many uses, not necessarily to enter new positions. CSM indicator is the work of Aliakbar Kavosi from Iran releasing the first version of CSM in March 2016 for the MetaTrader 4 platform and updated it twice in late 2019, giving the indicator a new code and better symbols integration with various brokers. This author is the owner of 18 published products on the MQL5 market without significant attention from the users. CSM is not free but seems to do other Currency Strength meters do, just with a small deviation.
Overview
This indicator combines two methods of calculation the currency strength, Absolute currency strength (ACS), and Relative currency strength (RCS). CSM is further extended with the option to select symbols on majors or minors with the addition of Bank for International Settlements (BIS) factor. It is not very clear what this factor affects but it is meant to adjust the currency values to represent more valid data. The uses are just as with other meters, traders that rely on line crosses or overbought/oversold ranges can naturally use for reversals or trend confirmation.
On the other hand, it is not for low timeframe scalpers, the data that this indicator is presenting in the window is too messy and unreliable in lower timeframes. Reliability is adequate at H1 and higher. Other uses are just filtering for both trend confirmation or following, for example, enter only sell position for currencies getting weaker or when the currency is in the set oversold range. The zero line can also be a factor for this purpose.
According to the author, this tool is handy when trading the news, if the difference between currencies is above 3 or 30% without the BIS factor, the signal is strong. BIS reporting could be a good addition to this indicator although the real value is expressed on how effectively it can be used. We have noted that the developer may not have extensive experience in trading, some sources on the Relative currency strength (RCS) published on the Overview page is from Wikipedia.org, which is not professional or specialized for Forex, especially for indicators. Providing suck link to the indicator Overview page is not a good sign, the author may lack practice and builds indicators based purely on theories. This fact reflected on the CSM popularity.
CSM will show a histogram and the currency lines chart. The Strength readings vary from 0.0 to 9.0 and are displayed in the right part of the indicator chart, beside each currency. A value of 9.0 is the strongest, and is the BIS factor is not used it will be shown as 100%. They will be automatically sorted to help traders find the strongest one easily. In RCS mode, CMS shows the strength of 8 major forex currencies, while in ACS mode the range is extended to non-majors. The settings panel will allow all this to be set, additionally visuals and toggles for each currency line, etc. CSM code is EA friendly according to the author.
Service Price
The price for this kind of Currency Strenght meter is $30 with 5 activations, 10$ to rent for 1 year and a Demo is available.
Conclusion
Probably the most interesting about this one is the mixed modes, Absolute currency strength (ACS), and Relative currency strength (RCS) with the addition of the BIS filtering factor. How useable is all this is unknown, there are no reviews by the MQL5 users. The two published comments are just not enough. Even if the rest of Aliakbar Kavosi’s products are not popular, it does not mean they do not provide value. It is recommended to try CSM before anything, especially if you are a trend following or reversal trader cautious about the fundamental analysis.
This Forex service can be found at the following web address: https://www.mql5.com/en/market/product/15258
