Indicators

Currency Index

Developer: Steven Dickinson

The Currency Index indicator computes an “index” using an un-weighted geometric mean of several currency pairs. This is similar to the US Dollar Index (USDX) and FXCM’s USDOLLAR. However, it does this, not just for the USD, but for 7 other currencies too. That’s 8 major currencies in total: USD, EUR, GBP, CHF, JPY, AUD, CAD and NZD.

The “index” is computed for one currency at a time, which requires 7 currency pairs. For example, to compute the “USD index” it uses EUR/USD, GBP/USD, USD/CHF, USD/JPY, AUD/USD, USD/CAD and NZD/USD.

The “index” is normalized so that it has a nominal value of 10000 on 1/1/2011; this is similar to FXCM’s USDOLLAR.

The resulting “index” can be treated as a synthetic instrument (although only close prices are available, there is no high or low). You can perform the majority of standard technical analysis techniques with it, including drawing trend lines, marking support / resistance, etc. as well as using technical indicators such as moving averages, RSI, Bollinger Bands and many others.

Parameters

The following parameters are available in this app:

  • Currency: The currency for which you want to compute the index. This can be USD, EUR, GBP, CHF, JPY, AUD, CAD or NZD.
  • Price type: This can be Close, Median or Typical.
  • Version: This can be Full or Lite. The Lite version only computes the strengths for USD, EUR, GBP, JPY and AUD. The Lite version requires fewer currency pairs, and thus might be useful where it is not possible to subscribe to the 28 currency pairs required by the Full version. The indicator also supports “Lite + CHF”, “Lite + CAD” and, “Lite + NZD”.
  • USD/EUR/GBP/JPY/AUD/CHF/CAD/NZD: Specify the colours for the USD, EUR, GBP, JPY, AUD, CHF, CAD and NZD.
  • Line width: This is the width of the line.
Risk Disclaimer

The application displayed on this page does not take in to consideration your individual personal circumstances and trading objectives. Therefore it should not be considered as a personal recommendation or investment advice. Past performance is not indicative of future results. There is no guarantee that the systems, trading techniques, trading methods, and/or indicators will result in profits or not result in losses.

Requirements

This indicator is only compatible with FXCM’s Trading Station Desktop. Additionally, an FXCM account is required (including free FXCM demo accounts). Note, when using a demo account, the “Lite” or “Lite+” modes of the indicator might be required, due to the limit on the number of currency pairs which can be subscribed.

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Forex Capital Markets, LLC. (“FXCM LLC”) is an independent legal entity and is not affiliated with robocod.blogspot.co.uk. robocod.blogspot.co.uk is not owned, controlled, or operated by FXCM LLC. Steven Dickinson is not an employee, agent or affiliate of FXCM.