Fundamentals The idea for this script is based on Fundamentals. I wanted to verify the strength/weakness of the US dollar against other major economies This will keep me on the right side of the "trend" .. bullish or bearish ?
In short, because Fundamentals Analysis are reflected via economic updates which influences what the price will be doing for the next couple of days I think it is fair to have an "Indy" that will look at the moving averages across these pairs, because if the dollar sentiment changes, this will be reflected across the major economies
How to use it This is not a buy/sell entry "Indy", nor a RSI type "Indy" where I tried to calculate overbought/oversold areas.. In fact, when this indy hits anything over 5 to max ( which is 12 ) ..that is a very strong signal and should be seen as such..bearish or bullish If you want to test it out, I would suggest use a plain chart ( naked chart ) with a 20 or 50 MA ( depending on your TF) and see how the currency pair e.g EUR/USD correlates with this indy. The default pairs are AUD/USD, NZD/USD, GBP/USD and USD/JPY, with a main chart on EUR/USD
Timeframes 1m and 5m charts, change the MA values to 3 ( short), 20 ( medium), 50 ( long) or even more, else there are too many false positives. 1H and higher timeframes works well with the current default values.
What indicator are you using in the bottom window? And can that indicator be used on a specific currency pair?
conradbr
⋅
@ant_pear, when I posted the indy , my ichimoku was still on the main chart... this is the script for the bottom window...I tried to describe it in the description as well as in the indy...I use it on my EUS/USD chart in order to see what the other majors are doing against the dollar..