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USDX Indicator: A Six-Currency Weighted Dollar Index

Article MQL5 code base
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Summary

The USDX indicator estimates a dollar index from six exchange rates: EUR/USD, USD/JPY, GBP/USD, USD/CAD, USD/SEK, and USD/CHF. It applies fixed exponents to each rate and multiplies the result by a constant, producing a composite value intended to track the US dollar against a currency basket.

The indicator exposes an applied-price setting and an option to reverse the plotted index. The document gives the calculation but no historical evidence, interpretation guidance, or trading rules. It does not explain the index’s construction rationale, how to align input markets, or how its output compares with an official dollar index, so users should treat it as a specific basket calculation rather than a validated trading signal.

Key ideas

  • The index combines six currency pairs using fixed weights expressed as exponents.
  • The calculation includes a scaling constant and uses prices selected through an applied-price setting.
  • A reverse option changes the displayed index direction.
  • The document provides no performance evidence or standalone entry and exit method.

Tags

ForexTechnical indicatorsMulti-asset

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.