I agree: absolutely correct. That’s why I implemented the Euro Index, just as an example.

@wjaz.fx : This is NOT correct – this quote should be G’s, not mine.

Thanks for pointing to this one, a good example for an evenly weighed index. Running this one alongside USDx and EURx, it becomes obvious that we can start to build our own…[Read more]

That’s correct.

I don’t calculate ‘USD’, and I don’t calculate ‘EUR’ or ‘CAD’ either: it’s USDx, EURx, CADx, all of them based on the above mentioned basket.

See pic for the simple math. Maybe yours is different.

That’s correct.

I don’t calculate ‘USD’, and I don’t calculate ‘EUR’ or ‘CAD’ either: it’s USDx, EURx, CADx, all of them based on the above mentioned basket.

Hello G.!

I checked it, my code looks correct to me.

This is the formula you provided:

When extracting EURx from this one, we simply multiply by iClose(“EURUSD”,0,i), when extracting CADx we would divide by iClose(“USDCAD”,0,i). At least, this is the arithmetics I’m using at the moment, and it looks ok.

For USDx, there’s nothing to do: U…[Read more]

I appreciate that!

I confirm that. This is index and algorithm specific. Check out EURx, and other currencies will be sqeezed – that’s why I implemented this one. Those currency baskets provide specific views of the FX market: US centered vs. EU centered.

Ok, I’ll check that.

Interesting! So you assume that what our brain filters out of the information our…[Read more]

Good summary!

Please play with that reference point parameter in CIX. It’s like modifying RSI length and may change the point of view. See reset discussion in my previous post. And you already posted your opinion about the zero line in this kind of CS algorithm: it is meaningless as a rigid borderline, I’m absolutely with you regarding…[Read more]

Thank you!

It’s already there! When USDx basis is chosen, USD line represents pure USDx, with the same normalization applied as the other lines. The same is true for EURx and EUR line, when EURx basis is chosen.

That’s absolutely normal, given the nature of the normalization chosen. For M1, try ‘reference point’ = 1 day. Possibly modifying…[Read more]

Ok, based on @gg53 ‘s ideas posted earlier in this thread, here’s my 1st currency strength indicator based on USDx and EURx index baskets. A sincere thank you to gg53 for posting the idea!

For a description of the indexes, please refer to the links published in my earlier post.

Source code is provided, so anybody feel free to check out the…[Read more]

Great to hear that!

Sure, RSI is an option. At first sight, I’m having the same doubts like in case of Stoch: this kind of ‘hard’ normalization with fixed limits tends to distort the original values and the strenghts of movements. For very wide calculation windows, this issue is minimized, though.

I’ll give it a try tomorrow. Above method…[Read more]

Great to hear that!

Sure, RSI is an option. At first sight, I’m having the same doubts like in case of Stoch: this kind of ‘hard’ normalization with fixed limits tends to distort the original values and the strenghts of movements. For very wide calculation windows, this issue is minimized, though.

I’ll give it a try tomorrow. Above method…[Read more]

Great to hear that!

Sure, RSI is an option. At first sight, I’m having the same doubts like in case of Stoch: this kind of ‘hard’ normalization with fixed limits tends to distort the original values and the strenghts of movements. For very wide calculation windows, this issue is minimized, though.

I’ll give it a try tomorrow. Above method…[Read more]

Normalization brainstorm:

IMO, methods like Stoch or Fisher should be eliminated per se. These would distort the index lines.

So an easy and obvious option would be to display the difference in percent of the current index value as compared to some fixed reference point of the same index line. This reference point could be:

(A) a point in the…[Read more]

Yes, you’re right! Did some quick tests last night, and came to the conclusion that this will require a proper normalization when calculating crosses. Need some more time to work it over!

Thank you, G! Those counter movements do exist, and it’s often a major endeavor for the police to keep both groups apart. But you know how news are working: PEGIDA is the main topic, the counter movement a ‘subordinate clause’, unless kind of a street battle takes place. At least this is a fact over here, I don’t know about international news in…[Read more]

Thank you, G! Those counter movements do exist, and it’s often a major endeavor for the police to keep both groups apart. But you know how news are working: PEGIDA is the main topic, the counter movement a ‘subordinate clause’, unless kind of a street battle takes place. At least this is a fact over here, I don’t know about international news in…[Read more]

A quick note:

Some background info can be found over there: https://www.theice.com/publicdocs/futures_us/ICE_Dollar_Index_FAQ.pdf

A description of the corresponding EUR index: https://www.theice.com/publicdocs/rulebooks/futures_us/24_ICE_Futures_EURO_Index.pdf