MIndex_002
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This script is designed to provide traders with a comprehensive "Currency Index" based on the performance of major global currencies relative to the United States Dollar. Instead of looking at just one pair, it calculates a weighted representation of market strength to help visualize how the USD is performing against a basket of other significant economies.
Core Functionality
The primary purpose of this tool is to consolidate data from six different currency pairs—EURUSD, GBPUSD, AUDUSD, USDCHF, USDJPY, and USDCAD—into a single, unified line on your chart. By aggregating these values, it creates a broader picture of market sentiment than any individual pair could offer alone.
How the Logic Works
The script operates through a three-step process:
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Data Collection: The tool automatically pulls the closing prices from six major currency pairs simultaneously. It gathers data on the Euro, British Pound, Australian Dollar, Swiss Franc, Japanese Yen, and Canadian Dollar in relation to the US Dollar.
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Geometric Mean Calculation: To determine a baseline value for the "USD Index," the script uses a mathematical formula that combines these six pairs. It multiplies several figures and divides by others to calculate a balanced average (a geometric mean). This ensures that no single currency pair disproportionately skews the index, providing a more stable and holistic view of the Dollar's relative strength.
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Customizable Currency Conversion: One of the most useful features is the ability to view this index from different perspectives. While it defaults to the USD base, the script allows you to change a single setting to view the index in terms of other currencies (such as EUR, GBP, AUD, CHF, JPY, or CAD). When you switch the currency type, the script automatically performs the necessary conversion math to re-orient the data so you can see the market from that specific currency's point of view.
Key Benefits for Traders
- Market Overview: It filters out the "noise" of individual pairs to show you the overall trend of the US Dollar.
- Versatility: Because it can be toggled between different base currencies, it serves as a multi-purpose tool for traders who work across various global markets.
- Visual Simplicity: It transforms complex multi-pair calculations into a single, easy-to-read line, making it easier to identify broader market trends at a glance.
//+------------------------------------------------------------------+
//| MIndex.mq4 |
//| Copyright © 2005, Yuri Makarov. |
//| http://mak.tradersmind.com |
//+------------------------------------------------------------------+
#property copyright "Copyright © 2005, Yuri Makarov."
#property link "http://mak.tradersmind.com"
#property indicator_separate_window
#property indicator_buffers 1
#property indicator_color1 OrangeRed
extern string Curency = "USD";
double EurUsd[],UsdChf[],GbpUsd[],UsdJpy[],AudUsd[],UsdCad[];
double Idx[];
int init()
{
IndicatorShortName(Curency);
SetIndexStyle(0,DRAW_LINE);
SetIndexBuffer(0,Idx);
return(0);
}
void start()
{
ArrayCopySeries(EurUsd,MODE_CLOSE,"EURUSD");
ArrayCopySeries(GbpUsd,MODE_CLOSE,"GBPUSD");
ArrayCopySeries(AudUsd,MODE_CLOSE,"AUDUSD");
ArrayCopySeries(UsdChf,MODE_CLOSE,"USDCHF");
ArrayCopySeries(UsdJpy,MODE_CLOSE,"USDJPY");
ArrayCopySeries(UsdCad,MODE_CLOSE,"USDCAD");
int counted_bars=IndicatorCounted();
double USD;
if(counted_bars<0) return(-1);
if(counted_bars>0) counted_bars--;
int limit=Bars-counted_bars;
for(int i=0; i<limit; i++)
{
USD = MathPow(UsdChf[i]*UsdJpy[i]*UsdCad[i]/EurUsd[i]/GbpUsd[i]/AudUsd[i],1./7.);
if (Curency == "USD") Idx[i] = USD;
if (Curency == "EUR") Idx[i] = USD*EurUsd[i];
if (Curency == "GBP") Idx[i] = USD*GbpUsd[i];
if (Curency == "AUD") Idx[i] = USD*AudUsd[i];
if (Curency == "CHF") Idx[i] = USD/UsdChf[i];
if (Curency == "JPY") Idx[i] = USD/UsdJpy[i];
if (Curency == "CAD") Idx[i] = USD/UsdCad[i];
}
}
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