MIndex_001
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This tool is designed to provide traders with a high-level, consolidated view of the US Dollar's strength by calculating a weighted "Currency Index." Rather than looking at individual currency pairs in isolation, this script aggregates multiple major global currencies into a single visual line on your chart.
How it Works
The logic follows a three-step process to generate a unified market sentiment indicator:
1. Data Collection The script automatically pulls the real-time closing prices of six primary currency pairs involving the US Dollar: EUR/USD, GBP/USD, AUD/USD, USD/CHF, USD/JPY, and USDCAD.
2. The Mathematical Core (The "Index") To determine the core strength of the USD, the script performs a multi-currency calculation. It takes the products of the opposite-side currencies (like the Swiss Franc, Japanese Yen, and Canadian Dollar) and divides them by the prices of the other major partners (Euro, British Pound, and Australian Dollar).
By applying a geometric mean (a specific type of average used in finance to normalize different scales), the script creates a base "USD Value." This represents a neutral baseline for the dollar's power relative to the global market.
3. Customization and Conversion The unique feature of this script is its ability to translate that USD baseline into your preferred currency. Depending on which currency you select in the settings, the script adjusts the final output:
- If you choose USD: It shows the pure strength index of the Dollar.
- If you choose a major currency (like EUR or GBP): It calculates what that USD strength looks like from the perspective of that specific currency.
- If you choose an inverse currency (like JPY or CHF): It performs a division to show the relative value correctly against the dollar's movement.
Practical Use for Traders
Instead of monitoring six different charts to see if the Dollar is gaining or losing momentum, this script compresses that information into one line. By watching the direction and trend of this index, you can quickly identify whether the US Dollar is currently trending bullishly or bearishly across the entire global forex market simultaneously.
//+------------------------------------------------------------------+
//| 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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