Simply, it averages the values of a currency vs the 5 other currencies in the basket, and displays each average value in a table with color coding to quickly identify the strongest and weakest currencies over the past 14 bars (or user defined length).
The Dir. value looks at the difference in average value between current and X bars back (user defined), telling you whether the combined value has gone up or down in the last X bars.
Using the average allows us to get a sense of the currency strength vs an equally weighted basket of the other majors, as opposed to using Indexes which are heavily weighted to 1 or 2 currencies.
The table doesn't load super fast as we are making 15 Security requests to get the values for each pair (where possible we reverse the values of the pair to reduce Security requests, e.g. we don't need to request EURUSD and USDEUR , we reverse the value to calculate the USD ).
*** LIKE and FOLLOW if you enjoy the content! ***
Please leave any questions or comments below and I will respond!
In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in a publication is governed by House Rules. You can favorite it to use it on a chart.