Indicator can be used for dxy correlation trading.
it calculates the dollar index (USDX or DXY) using the EUR/USD, USD/JPY, GBP/USD, USD/CAD, USD/CHF and USD/SEK currency pairs.
In order to trade them, you need to find a confirmed technical analysis pattern on the DXY chart and look for a correlated currency pair that has the same picture on its price chart.
The formula used for calculation is the following:
USDX = 50.14348112 × EURUSD -0.576 × USDJPY 0.136 × GBPUSD -0.119 × USDCAD 0.091 × USDSEK 0.042 × USDCHF 0.036
The resulting indicator resembles DXY . The index was introduced in 1973 at an initial value of 100. The rules for its calculation were updated only once — in 1999 to reflect the introduction of euro.
