Hi all, I am not sure if this post is useful to everyone, but given there is not a lot of info on using this sub's method in Forex, I wanted to share my setup and learnings.
Forex is a completely different beast than stocks. If you are trading the Euro Dollar (EURUSD), not only do you need to consider if the Euro is strong or weak, you also need to consider if the Dollar is strong or weak. It is entirely possible that you go long the Euro into strength, but because the Dollar is also strong, EURUSD may go nowhere or even down. I like to flip u/HSeldon2020's adage "put the market first" into "put 2x markets first", referring to the need to analyse each currency before you can get a good view of RS/RW. I've been studying and trading relative strength using this subs RS/RW method since November 2021 and want to share my insights.
I will break this post up into sections:

1. Creating currency strength charts in TradingView
2. How to interpret these charts
3. Running RS/RW scans on currencies
4. Thoughts/considerations

Creating currency strength charts in TradingView

First of all, we need to create a currency strength chart in TradingView. Forex, as a decentralised market, doesn't have a single tracker like the S&P500 that can be used to gauge market strength or weakness. We need to do this for every single currency pair we trade.
Thankfully, TradingView makes this really easy with spread charts.
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https://preview.redd.it/m8cbbxkrkvu81.png?width=822&format=png&auto=webp&s=47e11138c2ab1b51f6018344545772646d6995f2
Have you ever seen the math symbols next to the search bar and wondered what they do? Maybe, if you're like me you might have clicked on them a few times, not knowing what they do, and then given up and moved on to something else. However, these symbols unlock an extremely powerful feature called spread charting. In essence, spread charting is taking one asset and re-charting it with some alteration. For example, you could create your own version of the FAANG index, but remove Netflix based on their recent earnings bomb. To do this, you would simply search for (FB+AAPL+AMZN+GOOG)/4. This will add all four symbols together and then find the mean by dividing by the number of symbols:
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Daily Chart for (FB+AAPL+AMZN+GOOG)/4
At the most basic level, we want to take this concept and apply it to different currencies. The goal is to create a chart that shows the strength of a single currency like the USD, EURO, CAD, etc.
In FX, we already have the DXY which tracks the strength of the US Dollar. There are also other indices like EUROWCU which track the strength of the Euro. We can use these directly, or alternatively, create our own using the spread charting feature.
Now, this next part gets into some math and FX basics, so either follow along or skip ahead if you're already trading FX.
Currencies are quoted in pairs of: BASE|QUOTE. For example, EURUSD. EUR is the base, USD is the quote. In layman's terms, EURUSD means we: Buy EUR using USD. USDJPY means we buy USD using JPY.
If we just use EURUSD, it can move in trading because:
Up:

• Euro is stronger
• USD is weaker

Down:

• Euro is weaker
• USD is stronger

Ranging:

• Equal or similar strength

This presents a really interesting opportunity for RS/RW traders. Not only do we have the thing we are trading (e.g. the Euro) gaining or losing strength, we also have the counterpart (e.g. USD) having an opposite effect. This is why it is crucial for us to map the strength of each currency. If we just look at one it will only tell us half of the story.
To the math, to understand the strength of a currency we add all the pairs where the currency is the base, subtract where it is the quote, and divide by the number of other currencies indexed against (7).
For example in TradingView search we can enter:

• EUR = (EURUSD+EURJPY+EURCHF+EURGBP+EURAUD+EURCAD+EURNZD)/7
• USD = (1/EURUSD+USDJPY+USDCHF-GBPUSD-AUDUSD+USDCAD-NZDUSD)/7
• GBP = (1/EURGBP+GBPUSD+GBPCHF+GBPJPY+GBPAUD+GBPCAD+GBPNZD)/7
• And so on...

If you're confused, don't worry. Just literally copy/paste one of those into TradingView and it will give you a chart showing the strength of that currency:
A Daily Chart of the USD index using the formula above
As you can see, USD has been surging since February. This tells us half of the story.
If we chart another currency, like JPY, you will see it has been incredibly weak at the same time:
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Daily chart of JPY during the same time
And then, just like magic, we know that USD = strong, JPY = weak, therefore USDJPY is probably very strong right now. It only takes a quick news search to see that USDJPY has been incredibly strong since Feb and is the current topic of Government intervention in Japan.

How to interpret these charts

Great! We now have the basics. We know that TradingView will let us chart a custom index (or we can use some existing ones like DXY).
It can be useful at this point to pull up a few charts into a split-screen and use this as a sort of screener to see what is strong/weak today. I like to also include the Ichimoku Cloud for easier trend identification:
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Quad screen comparing EUR, USD, GBP, and CAD
It can be a lot to take in, so I usually prefer screening just two currencies, or using one of the RS/RW screeners I'll talk about soon.
To make things clearer, let's zoom in on EUR and GBP today:
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EUR and GBP strength on 1H chart
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EUR and GBP strength on 5m chart
We can now clearly see that EUR has been heading up since 2am, while GBP has been heading down since 2am. What does this mean? Well, we already know this means that the EURGBP is probably trending higher. Let's take a look:
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EURGBP 5m chart
Yes! We've got a beautiful uptrend intraday on EURGBP.
What we can do now is monitor the charts and look for instances where the GBP strength chart breaks down bearish again or EUR continues moving up. Both will be a strong signal that we can start to see some movement in the pair EURGBP.
It also goes without saying that we can use the traditional teachings from the wiki in the same way, with a slight modification:

• Let's say the Euro drops massively this afternoon, but EURGBP doesn't drop, what does this mean? It's the same sort of scenario as if we saw SPY gap down but AAPL treading water or heading slightly up. It's a sign of relative strength. If the Euro starts going up again, we could expect a larger than normal upswing in EURGBP.
• Maybe EUR keeps heading higher but the EURGBP chart is treading water or heading down. We're probably shifting to relative weakness and/or the momentum is fading. Combined with a top-down view of the market this can give you a powerful bias for your trade.

The important point I want to get across is that the fundamentals are the same as what is taught in the wiki, but instead of thinking "market first" you need to think "2x markets first". What is the Euro doing? AND what is the USD doing? You need to have a really good read of the chart to take these trades in FX. A marginal analysis won't cut it.
The good news is we can automate a lot of this hard work with the next section.

Running RS/RW scans on currencies

Just like many of the RS/RW indicators that have cropped up for trading vs SPY, you can use this same technique for trading currencies. The difference is now that we've done some charting, we actually have a reliable index to use.
I use the incredible screener created by squattingsquid (https://www.reddit.com/RealDayTrading/comments/sgii13/rrs_custom_stock_screener_for_tradingview_top_100/) to load up currency pairs vs my new base charts.
It's as simple as loading up the script, doing the usual setup for the tables, but instead of SPY as the comparison symbol, we use the spread chart symbol from earlier:
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An example setup for USD pairs
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Screener output
I can now see, in one quick glance, that if I wanted to trade a USD pair right now, USDCHF is probably the strongest on the long side.
If I pull up USDCHF intraday, it has made a fresh move up and is consolidating. Maybe it will break upwards? Who knows. But if the USD strength chart starts showing some bullish moves (in the same way we would wait for SPY to make a move first in stocks), then USDCHF could be a good long position:
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https://preview.redd.it/34cgcvkatvu81.png?width=1633&format=png&auto=webp&s=68bb48f0ebcef631d043f0188f7abf57f1a1c0f4
Using the screener does remove some of the complexity of analysing two base markets all the time. You can simply look for the strongest/weakest pair for USD, watch the USD strength chart, and then take a trade when USD makes a move in either direction. You can employ your usual moving averages etc. on the 5m chart to capture an entry edge. From this point on, it's very similar to the wiki.
You can even load up a relative strength indicator and use the strength chart as the comparison input. It really is just as flexible as normal RS/RW trading with stocks:
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USDCHF with the Real Relative Strength indicator using my USD strength symbol as a comparison
I often overlay the charts with the screeners in the top so I always have a good video of what is RS/RW at any given time

Thoughts/considerations

If you've read this far, thank you. Setting up a Forex version of this subs methods has been a big project of mine for the past few months. I find Forex to be very interesting to trade and do enjoy reading about monetary policy and economic outputs. It's not for everyone!
In no way do I feel like I have "cracked the case" on how to trade FX using RS/RW, but I hope this does help anyone who shares my interest give it a shot or build on the idea. If nothing else, I have built a deep understanding of how Forex markets operate by simply observing the strength and weaknesses of different currencies and extrapolating this into trading pairs.
The final note I want to make is to really re-emphasize how different FX is to stocks. If the S&P500 gaps up, you could randomly pick any constituent stock and there is a likelihood that it is up too. If the USD strength chart gaps up, any USD pair could actually be down. It doesn't matter what the USD is doing if another currency is melting down. FX really is a different beast. However, if you take a "2x markets first" approach you will quickly see how the methods of u/HSeldon2020 can apply in Forex, and presumably, in commodities and Crypto too.
I haven't even touched on some of the other parallels such as the importance of a strong daily chart, but trust me, everything in the wiki is applicable in Forex as long as you get your comparison symbol right. I think this method comes close to replicating for Forex what SPY is to stocks.
If there are any other Forex lurkers in this sub, I would love to collaborate and really build on this to create a sort of Forex version of the RS/RW rules. I honestly don't know if there is any interest or demand for this, so I am keen to hear what everyone thinks.

Thank you everyone for the positive reception to my post yesterday where I outlined my setup in Forex for using RS/RW. The first post is here: https://www.reddit.com/RealDayTrading/comments/u8nyts/how_to_chart_relative_strength_in_forex/?utm_source=share&utm_medium=web2x&context=3
To follow it up, I wanted to share something practical to show how it all comes together, and how the concepts of RS/RW can be applied in Forex. My intention is to keep testing this approach, incorporate some newer ideas such as algo lines, and help build a set of Forex resources that can help the community.
I'll assume you've read my first post as I walk through today's setup on the US Dollar.

Charts

Quad Screen Split. DXY at the top with RS/RW screener, followed by USDJPY, USDCHF, and USDCAD in the bottom three screens.
My basic setup today consisted of the DXY (US Dollar Index — we can call it our Forex version of SPY for USD pairs) and three USD pairs that I like to trade. The US Dollar has been heading higher recently, and coupled with Powell's comments last night, there is some bullish energy in the market. If we just focus on the DXY on the daily, it is definitely more bullish than bearish:
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DXY Daily Chart
The question is, if we wanted to trade the Dollar, what would be the best pair? Enter RS/RW.

DXY Today

If you were up early this morning you would know and see a few things:

• DXY is bullish on the daily
• Fundamental news yesterday is hinting at further rate hikes (bullish for the Dollar)
• A 5m chart shows price has been consolidating and now breaking upwards on our trend line

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DXY 5m chart showing strong trend line break (wicks connecting the line don't show up well on this image, sorry)
If we have a bullish market bias, plus a bullish intraday movement, we could start to consider what pairs to trade.
At the moment the trend line breaks, the RS/RW screener makes it really easy to see where our best trade could be... USDCAD:
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USDCAD showing the most strength
If we cross over to USDCAD, we can see it is looking quite good:
USDCAD 5m chart at the time of DXY breakout
USDCAD is also showing HA continuation on the 5m and 4H charts:
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USDCAD 5m showing HA continuation in this new move
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USDCAD also showing HA continuation on the 4H chart
So, overall USDCAD has some bullish confluences, coupled with the relative strength over the other pairs. Let's see how the day is tracking 8 hours later:

Results

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All pairs compared to DXY so far today
If we take a look what happened, DXY continued heading higher. All three pairs also headed higher, but the RS/RW is pivotal to the risk profile of each possible trade.
Notice that after the initial leg up, there was some consolidation. For USDCAD, this consolidation was tight. In contrast, the consolidation on USDJPY is very messy. If you were practising good risk management you could've easily been stopped out on this trade, despite being correct on the direction.
Here they are side by side:
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USDCAD (left) and USDJPY (right) with the same time highlighted in the rectangle
If you entered at the highs of that consolidation you would have an approx. 10 pip max drawdown on USDCAD, vs 22 pip max drawdown on USDJPY. The final leg up then ended up being +38 pips vs +25 pips respectively. In the highly leveraged world of FX, these pip numbers are significant.
The USDCAD trade has a much better risk-adjusted return than if you traded USDJPY or even USDCHF.

Next steps

Hopefully this gives you an example of using a market-first approach to Forex coupled with RS/RW. You could make this trade even better by looking at the strength of CAD and JPY on their own, as I discussed in my original post. This would give you a holistic "2x markets first" approach that can be very powerful.
I don't think the method has been perfected for Forex yet, but I do think there is something here, and I do believe it is possible to apply the wiki concepts to trading currencies.
If you have any other ideas, please let me know. I would love for us to expand on this concept.