I have an idea for a new indicator. This indicator exists in equity trading, but I haven't found this in currency trading. It's called the beta factor (http://en.wikipedia.org/wiki/Beta_%28finance%29)
My idea is that you can compare the beta factor of a currency pair with an index (viewtopic.php?f=17&t=970&p=6997&hilit=us+dollar+index+euro+index#p6997).
So a Beta above 1 means that you have a very volatile currency pair and a beta less than 1 means that you have a less volatile currency pair compared to the index itself.
This would be an excellent indicator for all currency traders, since it is very important that you choose the right strategy (range trading, trend trading, swing trading, breakout trading etc.).
With this indicator, you should be able to see, which currency pairs are in a strong trend (values above 1) and which currency pairs are less trending (values under 1). And you can then choose the right strategy for each currency pair.
As example an end result should look like this (numbers randomly chosen for this example and not calculated):
GBP/AUD Beta 1.6
GBP/NZD Beta 1.4
GBP/JPY Beta 1.25
British Pound index 1.0
GBP/EUR 0.99
GBP/USD 0.8
GBP/CAD 0.7
GBP/CHF 0.5
Now you see in this example, that the currency pairs GBP/AUD, GBP/NZD and GBP/JPY are more trending than the average pound index and that the others pairs GBP/EUR, GPB/USD, GBP/CAD, GBP/CHF are in a less trending market compared to the index.
And with this you should be able to apply a successful strategy for each of this currency pairs.
Cheers
Patrick