We don’t want to be boring, but the US dollar is the most important currency for all traders, and not just in forex. Trading without a clear view of the US dollar is like driving in fog. Sooner or later you’re going to crash – it’s just a question of when.
The Quantum USDX has been created to provide a more ‘balanced’ view of the US dollar, more representative of the world today. It has four currencies all equally weighted, in the same way as with the Quantum JPYX indicator. These are as follows:
Euro
British pound
Japanese yen
Australian dollar
The Quantum USDX indicator displays strength and weakness in the US dollar against this basket of currencies. It can be applied to any chart in any timeframe and will give you an instant view of the US dollar. Alternatively, why not create a separate workspace with multiple timeframes.
The indicator can be used in one of three ways:
First, as an inverse indicator to a major currency pair, helping you get in, stay in and get out
Second, as a confirming indicator for the Quantum Currency Strength indicator, providing a perspective against other currencies
Finally, as the ultimate barometer of risk
The indicator plots strength and weakness of the US dollar as a candlestick chart in a separate indicator window when you attach it to the chart. In addition there are two configurable simple moving averages to help with your analysis of the chart.
Whichever approach you adopt, you will no longer have to leave your TradingView platform for a view of the US dollar. How cool is that.
Release Notes
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Updated for PineScript version 4 Added alert conditions
By equally weighted you mean? And how does this differ from using tradingview Compare feature to analyse a correlated currency pair and DXY simultaneously? Please I need an explanation for better understanding?