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The indicator (current strength) is represented in a separate window by Blue and Pink histogram .
- The parameter NPeriod represents the number of bars on which we calculate the variation of forces, the recommended value is 5.
The Blue histogram measures the buyers force, while the Pink histogram measures the sellers force.
- The change in color signifies the change in strength which leads t he price .
- Each drop (especially below 52.8) after touching levels 96.3 or 1.236 must be condidered a very strong sign of changing direction!
A simple glance at this indicator and in parallel with the price movement gives a very clear impression that it is a tool to predict very early the change of forces acting in the direction of prices.
More details about this system:
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