CSM indicator is Absolute currency strength (ACS) and Relative currency strength (RCS) Currency Strength Meter of major and minor symbols with selectable BIS factor for calculation.

This indicator helps trader to know weak and strong currency. The indicator's basic idea is "buy strong currency and sell weak currency". It is a usable tool for trading before and after important news and opening of markets. You can use Relative currency strength for pattern trading as well, among basic patterns which can be used are: cross, trend break, trend follow, divergences.

See this: https://en.wikipedia.org/wiki/Relative_currency_strength

How To Use Currency Strength Meter?

The Strength readings vary from 0.0 to 9.0, with 0.0 being the weakest and 9.0 being the strongest (or 0-100% if BIS factor not use). There are many uses for the CSM, one of the best uses is to gauge market condition before and after an economic news release. I like to look at the market and try to find the best pair(s) to trade prior to the release. If difference of two currencies is more than 3 (or 30% if BIS factor not use), it is good signal for trading.

The indicator uses BIS (Bank for International Settlements) factor for calculating currency strength, it is selectable in parameters. For this purpose you can use GetBIS free expert that automatic every 15 day search new data from www.bis.org site.You can get more information about BIS at this link: http://www.bis.org/about/

Advantages of the indicator:

• Shows strength of 8 major forex currency (USD, EUR, GPB, JPY, CHF, CAD, AUD, NZD). (RCS mode)
• Shows strength of all major symbol that have major currency at base and quote part. (RCS mode)
• Shows strength of others symbols that have or not have major currency in one of base and quote part of symbol. (ACS mode)
• Shows difference of base and quote strength of symbol currency in a histogram chart for RCS mode.
• Shows strength of base or quote currency in histogram or linear chart for ACS mode.
• Adjustable color and style and width of chart.
• Selectable BIS factor for calculation.
• Defines the position of Leader in chart.
• Automatic sorting of Leader that help to user find strong and weak currency very fast.
• Usable indicator on expert programs.