SFA Indicators

SFA indicators MT5

What is it and what is it for?

SFA (System of Fundamental Analysis) is a tool designed to identify hidden patterns in the forex market and spot the best trade entry points. SFA indicators break currency pairs down into individual currency indices, making it possible to determine which factors drive price action.

The Concept

A standard currency pair chart doesn't show what actually drove a move — the base currency or the quote currency. Without this breakdown, reliable fundamental analysis is virtually impossible. For example, when AUD/CHF drops, it's hard to tell what's really happening: is the Australian dollar weakening, the Swiss franc strengthening, or is there a broader global shift in market sentiment?

SFA solves this problem by decomposing cross rates into their base and quote currency components.

How It Works

Since official exchange-traded indices don't exist for most major currencies (except the US dollar), the indicator calculates synthetic indices for eight major currencies directly from cross rates. This isolates the "pure" strength of each individual currency.

In total, it calculates eight indices: USD, EUR, GBP, AUD, NZD, CAD, CHF, and JPY.

Key Insights & Solutions Provided by SFA:

Factor Isolation: Instantly determine which specific currency (base or quote) is driving pair movement after high-impact economic releases.
USD Impact & Cross-Dynamics: Clear visibility into how USD capital flows affect the remaining seven currencies.
Extremum Detection: Spot high-probability reversal points in cross pairs when one currency index hits an upper boundary while the other hits a lower boundary.
Contextual Analysis: Quickly assess whether a fundamental catalyst is maintaining momentum or starting to fade.

This tool is designed to deliver a clear fundamental snapshot of the market without relying on lagging technical indicators.

Indicators

The system consists of four MT5 indicators:

SFA Index
Displays the performance of both the base and quote currency indices directly on the pair's chart, starting from a selected anchor point. You can easily adjust this reference point by dragging a vertical line left or right across the chart.
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SFA Index EURGBP

SFA Index Dashboard
Displays all 8 currency indices simultaneously in a separate indicator window.
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SFA Index Dashboard

SFA Z-Score

This indicator works similarly to SFA Index, but instead of tracking percentage changes, it measures currency index momentum in relative terms (standard deviation) range across historical data.
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SFA Z-Score EURGBP

SFA Z-Score Dashboard

This is the dashboard version of SFA_Z-Score, displaying all 8 currency indices simultaneously in a single indicator window.
Key Feature: Instantly identifies which of the 28 pairs listed above are trading at extreme overbought or oversold conditions.
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