Once you become familiar with currency strength meters, you will understand that the math behind it is not that complex, and you will probably decide to do it yourself. There are many indicators on the internet that will show you this information in your trading platform, or there are also ways to do these calculations yourself via MS Excel or a similar program.
Let us first talk about manual calculations. If we use a software like MS Excel, we need to create a spreadsheet that accepts input values for all important crosses and perform calculations. After these calculations are done, the strength will be displayed in another column. The big question now is how many values are needed to do this. Even if we take the simplest formula, it requires all 28 crosses between the majors and their starting value and current value. That means we have to enter 56 values. This can be quite time consuming.
We can choose a static starting point and move it less frequently, but even then we have to enter the other 28 current values. And we have to do that every time we want to retrieve the current data. Another thing to consider is that after copying and pasting values so many times, we can make mistakes - like copying the wrong values into the wrong cells, etc... This is much more time consuming and error prone than simply opening a website.
Using custom indicators
Use a custom indicator to show us the values. Many indicators for many trading platforms do this. This is a much better option as it does not require any work, but it does have its drawbacks. The first disadvantage is that it requires a working PC. All platforms that offer the possibility to integrate such indicators require a computer.
When we install the indicator, it must have access to the data for all the important crosses. And here lies the biggest problem. In most cases, there is no such data. When you add an instrument to MarketWatch, you actually subscribe to the server to get data for that instrument.
You'll see the ticks coming, but your platform will not do anything to store them. To do this, you'll need to open a chart, which will result in the creation of history files that the platform will then update periodically. But even if you open all 28 charts in all the required timeframes, there will be moments when your computer will not work, which can lead to gaps in the data. There can be many other reasons for gaps in the data that can lead to incorrect values. One of these reasons can be that opening 28 charts on the platform can cause performance issues and mess up the History Center.
The online currency strength calculator
Using an online currency strength calculator is a much better option compared to the manual and custom indicator options. It's less likely to give you incorrect values, you do not need a computer, and you do not have to go through the hassle of storing high- quality history data. It has its own services to get the latest data and all you need is a simple click.