Currency Strength Analysis: Finding the Best Pairs to Trade

import requests
from collections import defaultdict

API_KEY = "your_api_key_here"
BASE_URL = "https://tickatlas.com/v1"
HEADERS = {"X-API-Key": API_KEY}

# Major pairs and their component currencies
PAIRS = {
    "EURUSD": ("EUR", "USD"),
    "GBPUSD": ("GBP", "USD"),
    "USDJPY": ("USD", "JPY"),
    "AUDUSD": ("AUD", "USD"),
    "USDCHF": ("USD", "CHF"),
    "USDCAD": ("USD", "CAD"),
    "NZDUSD": ("NZD", "USD"),
    "EURGBP": ("EUR", "GBP"),
    "EURJPY": ("EUR", "JPY"),
    "GBPJPY": ("GBP", "JPY"),
}

def calculate_currency_strength() -> dict:
    """Calculate relative strength score for each currency."""
    scores = defaultdict(list)

    for pair, (base, quote) in PAIRS.items():
        resp = requests.get(f"{BASE_URL}/indicators", params={
            "symbol": pair,
            "timeframe": "H4",
        }, headers=HEADERS)

        if resp.status_code != 200:
            continue

        rsi = resp.json()["data"]["indicators"]["RSI_14"]

        # RSI > 50 means base currency is strong vs quote
        # RSI < 50 means quote currency is strong vs base
        scores[base].append(rsi)
        scores[quote].append(100 - rsi)  # Invert for quote currency

    # Average all scores for each currency
    strength = {}
    for currency, rsi_values in scores.items():
        strength[currency] = sum(rsi_values) / len(rsi_values)

    # Sort strongest to weakest
    return dict(sorted(strength.items(), key=lambda x: x[1], reverse=True))

# Run it
strength = calculate_currency_strength()
print("Currency Strength Ranking:")
for currency, score in strength.items():
    bar = "=" * int(score / 2)
    print(f"  {currency}: {score:.1f} {bar}")

def find_best_pair(strength: dict) -> dict:
    """Find the pair with the biggest strength differential."""
    currencies = list(strength.keys())
    strongest = currencies[0]
    weakest = currencies[-1]

    # Find the direct pair between strongest and weakest
    pair_name = None
    direction = None

    for pair, (base, quote) in PAIRS.items():
        if base == strongest and quote == weakest:
            pair_name = pair
            direction = "BUY"
            break
        elif base == weakest and quote == strongest:
            pair_name = pair
            direction = "SELL"
            break

    diff = strength[strongest] - strength[weakest]

    return {
        "pair": pair_name,
        "direction": direction,
        "strongest": strongest,
        "weakest": weakest,
        "strength_diff": diff,
        "confidence": "HIGH" if diff > 15 else "MEDIUM" if diff > 8 else "LOW"
    }

# Find the best trade
strength = calculate_currency_strength()
trade = find_best_pair(strength)
print(f"\nBest trade: {trade['direction']} {trade['pair']}")
print(f"  {trade['strongest']} (strong) vs {trade['weakest']} (weak)")
print(f"  Strength differential: {trade['strength_diff']:.1f}")
print(f"  Confidence: {trade['confidence']}")

Currency Strength Ranking:
  USD: 62.4 ===============================
  GBP: 56.8 ============================
  EUR: 52.1 ==========================
  CHF: 49.3 ========================
  CAD: 47.5 =======================
  AUD: 44.2 ======================
  NZD: 41.8 ====================
  JPY: 38.1 ===================

Best trade: BUY USDJPY
  USD (strong) vs JPY (weak)
  Strength differential: 24.3
  Confidence: HIGH

def confirmed_trade(pair: str, direction: str) -> dict:
    """Confirm the currency strength trade with technical indicators."""
    resp = requests.get(f"{BASE_URL}/indicators", params={
        "symbol": pair,
        "timeframe": "H1",
    }, headers=HEADERS)

    data = resp.json()["data"]["indicators"]
    rsi = data["RSI_14"]
    macd_hist = data["MACD_hist"]
    adx = data["ADX"]

    confirmations = 0
    reasons = []

    if direction == "BUY":
        if macd_hist > 0:
            confirmations += 1
            reasons.append("MACD bullish")
        if rsi > 40 and rsi < 70:
            confirmations += 1
            reasons.append(f"RSI healthy ({rsi:.1f})")
        if adx > 20:
            confirmations += 1
            reasons.append(f"Trend active (ADX {adx:.1f})")
    else:
        if macd_hist < 0:
            confirmations += 1
            reasons.append("MACD bearish")
        if rsi < 60 and rsi > 30:
            confirmations += 1
            reasons.append(f"RSI healthy ({rsi:.1f})")
        if adx > 20:
            confirmations += 1
            reasons.append(f"Trend active (ADX {adx:.1f})")

    return {
        "pair": pair,
        "direction": direction,
        "confirmations": confirmations,
        "max_confirmations": 3,
        "reasons": reasons,
        "go": confirmations >= 2
    }