This script creates currency indexes for the 8 majors and displays them in percentages with the origin at 100
It calculates the indexes based on the mataf.net formulas but unlike having all the indexes start equally on the 1st January you have the option to choose your own starting date,
so that you can take into account current market volatility.
I also made the script to be multi time-frame so you can display it based on different time-frame calculations, eliminating some of the lower time-frame noise, or you can keep it in the same time-frame as your chart and use the smoothing option (a value of 3 for smoothing usually is okay to get rid of spikes)
You can view all the indexes together for a broad view of all the currencies, where you can see the power of the inter-market flows and also which currencies are riding/correlating together...
or choose to have displayed only the 2 currency indexes on your chart (it works with the 28 majors).
Another way to think of it is similar to a currency strength indicator.... you can have 2 instances of the same indicator...one starting at the beginning of the month for a longer term view and the other instance starting only a week before current time. This way you can time your longs/shorts on short time frame weakness
while having long term confidence bias.
There are also labels to display to help help with what color corresponds to each index. As the indexes at the origin are 100 ...usually a value of 99 does the trick ( personally i just added the colors i am used to for the currencies and then turn them off)
It calculates the indexes based on the mataf.net formulas but unlike having all the indexes start equally on the 1st January you have the option to choose your own starting date,
so that you can take into account current market volatility.
I also made the script to be multi time-frame so you can display it based on different time-frame calculations, eliminating some of the lower time-frame noise, or you can keep it in the same time-frame as your chart and use the smoothing option (a value of 3 for smoothing usually is okay to get rid of spikes)
You can view all the indexes together for a broad view of all the currencies, where you can see the power of the inter-market flows and also which currencies are riding/correlating together...
or choose to have displayed only the 2 currency indexes on your chart (it works with the 28 majors).
Another way to think of it is similar to a currency strength indicator.... you can have 2 instances of the same indicator...one starting at the beginning of the month for a longer term view and the other instance starting only a week before current time. This way you can time your longs/shorts on short time frame weakness
while having long term confidence bias.
There are also labels to display to help help with what color corresponds to each index. As the indexes at the origin are 100 ...usually a value of 99 does the trick ( personally i just added the colors i am used to for the currencies and then turn them off)