Forex Technical Indicator EUR USD index

Forex Technical Indicator EUR USD index.
Description
EUR_USDindex is a combined indicator which consists of two separate ones: EURx and USDx (USDX). This indicator shows the changes in the both indices considering their correlation.

Formula
EURx=34.38805726*EURUSD^ (0.3155)*EURGBP^ (0.3056)*EUR/JPY^ (0.1891)*EURCHF^ (0.1113)*EURSEK^ (0.0785)
USDx = 50.14348112 × EURUSD (0.576) × USDJPY (0.136) × GBPUSD (-0.119) × USDCAD (0.091) × USDSEK (0.042) × USDCHF (0.036)

Trading use
Computer indicator EUR_USDindex, containing two indicators for the best performance, was designed to identify several major factors which can assist in active stock market trading.

From the practical point of view, EUR_USDindex is not a signal indicator for MetaTrader. As in the case with volatility, the index helps to define the subsidiary element.

If EURx and USDx are in the wide range, it usually signifies the pronounced market trend. In this case it is possible to apply trend trading system.

If EURx and USDx are in the close range, the market is in flat position. Thus, in such situation the break above resistance or below support levels would be more beneficial.

The crossing of the two lines of the index confirms a new powerful market trend. In this situation the price can form new local lows or highs.





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