EUR GBP AUD (Index) vs USD

Description:
This indicator calculates a weighted index using three major Forex pairs (EUR/USD, GBP/USD, AUD/USD) to represent their collective performance against the US Dollar (USD). With added functionality for moving averages, it provides a comprehensive tool for analyzing market trends, tracking momentum, and customizing strategies. Offers a holistic view of how major currencies are performing relative to the USD, making it easier to identify market trends and their potential impacts.

Display Modes:
Line (Default): A dynamic line chart with color changes indicating whether the index is above or below 1 USD.
Candles: Japanese candlestick visualization for detailed price action analysis.

Customizable Weights:
Adjust the weight assigned to each currency pair (EUR/USD, GBP/USD, AUD/USD) to reflect your trading priorities. Default weights are balanced, but you can customize them to suit your strategy, ensuring the total does not exceed

Moving Average Integration:
Includes a fully customizable moving average:Choose from SMA, EMA, WMA, or VWMA.Adjust the period length (default: 50).The moving average is plotted alongside the index to help identify trends and key levels.

Weighted Average Calculation:
Uses OHLC (Open, High, Low, Close) data to compute a precise weighted average for the index.

How to Use:
The indicator is designed to track the collective performance of major currencies against the USD. Here are some examples of how it can be used:

Example 1: Trend Confirmation with Moving Averages
Overlay the index with the moving average to confirm trends:If the index is trading above the moving average and the line is green, it signals strength in the major currencies relative to the USD.If the index is below the moving average and the line is red, it suggests potential USD strength.

Example 2: Customize Analysis with Weighted Strategy
Adjust the weights for EUR/USD, GBP/USD, and AUD/USD based on your trading priorities. For instance:If you expect EUR/USD to outperform, increase its weight in the calculation.Use the candlestick mode to observe intraday price action near support/resistance levels for potential trade setups.

Example 3: Momentum Analysis with Trend CCI
Combine this index with your custom Trend CCI indicator to enhance momentum analysis and identify potential trading opportunities:

Rising Index + Trend CCI > +100: Indicates strong bullish momentum in major currencies against the USD. This could signal a continuation of the uptrend or a good time to hold long positions.

Falling Index + Trend CCI < -100: Suggests bearish momentum, indicating a potential continuation of USD strength and an opportunity for short trades or exiting long positions.

Trend CCI Divergence: If the index is rising but the Trend CCI starts to fall, this could indicate weakening bullish momentum and the potential for a reversal.

Explore More:
Check out my other scripts to find CAD CHF JPY (Index) vs USD as well.
https://es.tradingview.com/u/NathanTradeus/#published-scripts