If there is one currency you need to follow, whether as a forex trader, or a trader in other markets, it is the US dollar. The US currency is the currency of first reserve, and the axis on which all the financial markets spin. The dollar supports the largest debt market in the world, it is the currency in which all commodities are priced, it is the principle currency held by all major banks, and is the currency used in facilitating exotic currency transactions. As the currency of first reserve, it also reflects risk sentiment.
The DXY indicator has been developed to allow you to instantly see US dollar strength and weakness without leaving your MT4 platform. It can be applied beneath a currency pair, or on a separate chart. The choice is yours. The DXY is based on the original dollar index, but we have replaced the SEK (Swedish Krona) with the Australian Dollar (AUD), as the SEK is rarely available on the MT4 platform. The weightings are as follows:
- EUR 57.6%
- JPY 13.6%
- GBP 11.9%
- CAD 9.1%
- AUD 4.2%
- CHF 3.6%
The Quantum DXY indicator displays strength and weakness in the US dollar against this basket of currencies. It will give you an instant view of the US dollar. Alternatively, why not create a separate workspace with multiple timeframes.
The indicator can be used in one of three ways:
- First, as an inverse indicator to a major currency pair, helping you get in, stay in and get out
- Second, as a confirming indicator for the Quantum Currency Strength indicator, providing a perspective against other currencies
- Finally, as the ultimate barometer of risk
Whichever approach you adopt, you will no longer have to leave your MT4 platform for a view of the US dollar!
- The Quantum DXY indicator works in all timeframes
Applying the Indicator
Open your MT4 platform and in the main menu, select View > Navigator to open the Navigator window which appears at the left hand side of your workspace.
In the Navigator window, expand the Indicators tree by clicking the “+” symbol. Find the Quantum section and expand it by clicking the “+” once again to reveal the full list of Quantum Trading indicators.
To start using the indicator, you can click and drag QuantumDXY from the Navigator to a chart or you can also double-click QuantumDXY (which will then be applied to the currently selected chart). Doing either one of these will display the Custom Indicator window where you can configure all the various user settings for your indicator. These options are grouped and can be accessed by selecting the tabs. Once you are done customizing the indicator’s options, click OK to run the indicator.
How to access standalone chart through Offline Charts
Immediately after applying the indicator to a chart, it displays the DXY in line chart mode and a box containing instructions to display the index in a standalone chart window.
Proceed by going to the main menu then select File > Open Offline which will display the Offline Charts window.
Scroll down the list to find the name of the Offline Chart generated by the indicator. Select it then click Open.
A new chart window will open where you can run other indicators to analyze the index as a candlestick chart. Please remember that you need to KEEP the host chart (the chart where the indicator is running) OPEN to continue updating its paired standalone chart. Though the feature is called “Offline Chart”, it will tick and update alongside its host chart. Any changes to the indicator setting or chart settings (like timeframe) in the host chart will reflect to the index displayed in the standalone chart.
Configuring the Indicator
Let’s focus on the Inputs tab and explore the different options available to configure the DXY indicator:
Account Email
When running the Quantum DXY for the first time in your trading account, you need to enter the email you used to purchase the indicator as part of its verification process. You only need to do this once as the email is stored in the terminal’s global variable cache after it is entered initially. Please make sure that you enter your email correctly and exactly without any extra spaces before and after it. If you made an error, simply fill this field again to update it.
Line Chart Price Type
When the indicator is set to Line Chart Mode, you can change the price type it uses to plot its line chart using this setting. You can choose one of the following price types: Open, High, Low, and Close which is the default setting.
Font Size
Sets the size of the text in the instructions box displayed at the top of the indicator.
Currency Prefix
This is the variable field that you will need to update, if your FX broker delivers your currency pairs with a prefix. As an example this might be a.EURUSD, in which case you would need to enter the value a. in the Currency Prefix field. If your currency pairs are delivered with a prefix, then you MUST enter this in this field, otherwise your indicator will not work.
Currency Suffix
This is the variable field that you will need to update, if your FX broker delivers your currency pairs with a suffix. As an example this might be EURUSDm, in which case you would need to enter the value m in the currencySuffix field. If your currency pairs are delivered with a suffix, then you MUST enter this in this field, otherwise your indicator will not work.
Offline Chart ID
This value serves as a suffix to the name of the Offline Chart the indicator generates. You need to change this value only if you are running more than 1 instance of the indicator in any given workspace.
Making Adjustments to the User Interface
Expanding the Indicator’s Screen Size
To expand the indicator to full size so that it fills the chart, these are the steps to follow:
- Hover your mouse pointer over the double horizontal lines marked with the red arrows above
- A small icon of two parallel lines with the words ‘click drag a border of the window’
- HOLD down the left click on your mouse, and drag these lines to the top of your chart, and release when done
- Hover your mouse over the right hand edge of the chart until a double headed arrow appears
- HOLD down the left click on your mouse, and drag the right hand edge of the chart across to the left and release when done
- Left click on the chart to make it the active window
- Left click on the zoom icon below, to expand your Quantum JPYX indicator to full size. The zoom function is shown below and is found in the standard toolbar below the top level navigation.
Removing the Indicator from the Chart
Open the chart’s Indicator List window by pressing Ctrl+I. You can also right-click the chart and select Indicator List from the context menu.
Select QuantumDXY and click the Delete button then click the Close button.
